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S 134/2015
First published in the Government Gazette, Electronic Edition, on 17th March 2015 at 5.00 pm.
No. S 134
INCOME TAX ACT
(CHAPTER 134)
INCOME TAX (INTERNATIONAL TAX COMPLIANCE
AGREEMENTS) (UNITED STATES OF AMERICA)
REGULATIONS 2015
ARRANGEMENT OF REGULATIONS
PART 1
PRELIMINARY
Regulation
1.
Citation and commencement
2.
Implementation of Agreement
3.
General definitions
4.
Meanings of “financial institution” and “reporting Singaporean
financial institution”
5.
Meaning of “custodial institution”
6.
Meaning of “depository institution”
7.
Meaning of “investment entity”
8.
Meaning of “specified insurance company”
PART 2
OBLIGATIONS IN RELATION TO FINANCIAL ACCOUNTS
9.
10.
Identification obligation
Reporting obligation
PART 3
OBLIGATIONS IN RELATION TO PAYMENTS TO NON‑PARTICIPATING
FINANCIAL INSTITUTION
11.
12.
Identification and disclosure obligations
Reporting obligation
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PART 4
NON‑REPORTING SINGAPOREAN FINANCIAL INSTITUTIONS, EXEMPT
BENEFICIAL OWNERS AND EXCLUDED ACCOUNTS
Regulation
13.
Non‑reporting Singaporean financial institutions and exempt
beneficial owners
14.
Accounts that are not U.S. reportable accounts
The Schedule
In exercise of the powers conferred by section 105P of the Income
Tax Act, the Minister for Finance makes the following Regulations:
PART 1
PRELIMINARY
Citation and commencement
1. These Regulations may be cited as the Income Tax (International
Tax Compliance Agreements) (United States of America) Regulations
2015 and come into operation on 18 March 2015.
Implementation of Agreement
2.—(1) These Regulations have effect for and in connection with
the implementation of obligations arising under the agreement
reached between the Government of the Republic of Singapore
(called the Government) and the Government of the United States of
America to improve international tax compliance and to implement
the Foreign Account Tax Compliance Act (referred to in these
Regulations as FATCA), signed on 9 December 2014 (referred to in
these Regulations as the Agreement).
(2) The Agreement as signed on 9 December 2014 is set out in the
Schedule.
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General definitions
3.—(1) In these Regulations —
(a) “qualifying collective investment scheme” means a collective
investment scheme constituted in Singapore —
(i) that is authorised under section 286 of the Securities
and Futures Act (Cap. 289); or
(ii) the units of which are or are to be the subject of an offer
or intended offer to which Subdivisions (2) and (3) of
Division 2 of Part XIII of that Act do not apply or
apply with modifications by reason of section 304 or
305 of that Act; and
(b) the expressions “approved exchange”, “collective investment
scheme” and “unit” have the meanings given to them in the
Securities and Futures Act.
(2) In these Regulations, expressions defined in the Agreement but
not in the Act or these Regulations have the same meaning as in the
Agreement.
(3) The following table lists the places where expressions in these
Regulations are defined or otherwise explained:
First column
Second column
Expression
Reference
annuity contract
Regulation 3(2) with paragraph 1(v) of
Article 1 of the Agreement
cash value insurance
contract
Regulation 3(2) with paragraph 1(w) of
Article 1 of the Agreement
exempt beneficial
owner
Regulation 3(2) with Sections I and II of
Annex II to the Agreement
financial account
Regulation 3(2) with paragraph 1(q) of
Article 1 of the Agreement, and
regulation 14
NFFE
Regulation 3(2) with paragraph B(2) of
Section VI of Annex I to the Agreement
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First column
Second column
Expression
Reference
non‑participating
financial institution
Regulation 3(2) with paragraph 1(p) of
Article 1 of the Agreement, and
regulation 11(5)
non‑reporting
Singaporean financial
institution
Regulation 3(2) with paragraph 1(o) of
Article 1 of the Agreement, and
regulation 13
U.S. reportable
account
Regulation 3(2) with paragraph 1(y) of
Article 1 of, and paragraph B(4) of
Section I of Annex I to, the Agreement,
and regulation 14
Meanings of “financial institution” and “reporting
Singaporean financial institution”
4.—(1) In these Regulations, “financial institution” means —
(a) a custodial institution;
(b) a depository institution;
(c) an investment entity; or
(d) a specified insurance company.
(2) In these Regulations,
institution” means —
“reporting
Singaporean
financial
(a) any financial institution that is a tax resident in Singapore, or
incorporated, formed or established under the laws of
Singapore, but excludes any branch of the financial
institution located outside Singapore; or
(b) a branch located in Singapore of a financial institution that is
not tax resident in Singapore, nor incorporated, formed or
established under the laws of Singapore,
but excludes any non‑reporting Singaporean financial institution other
than one to which a number known as a “Global Intermediary
Identification Number” (GIIN) has been properly allocated by the
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Internal Revenue Service in the United States of America for the
purposes of FATCA.
Meaning of “custodial institution”
5.—(1) In these Regulations, “custodial institution” means —
(a) the holder of a capital markets services licence under the
Securities and Futures Act (Cap. 289) for carrying out the
regulated activity of providing custodial services for
securities;
(b) a person who is exempted under section 99(1)(a) to (d), (g)
and (h) of the Securities and Futures Act read with
paragraph 6 of the Second Schedule to the Securities and
Futures (Licensing and Conduct of Business) Regulations
(Cap. 289, Rg 10), from the requirement to hold a capital
markets services licence to carry out the regulated activity of
providing custodial services for securities;
(c) a licensed trust company under the Trust Companies Act
(Cap. 336); or
(d) any other person that holds, as a substantial portion of the
person’s business (within the meaning of paragraph 1(h) of
Article 1 of the Agreement), financial assets for the account of
others.
(2) A person is not a custodial institution for the purposes of
paragraph (1) if it is an NFFE that meets the criteria in
paragraph B(4)(e) of Section VI of Annex I to the Agreement.
Meaning of “depository institution”
6. In these Regulations, “depository institution” means —
(a) a bank licensed under the Banking Act (Cap. 19);
(b) a finance company licensed under the Finance Companies
Act (Cap. 108); or
(c) a merchant bank approved as a financial institution under the
Monetary Authority of Singapore Act (Cap. 186).
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Meaning of “investment entity”
7.—(1) In these Regulations, “investment entity” means —
(a) the holder of a capital markets services licence under the
Securities and Futures Act (Cap. 289) to carry out one or more
of the following regulated activities:
(i) dealing in securities;
(ii) trading in futures contracts;
(iii) leveraged foreign exchange trading;
(iv) fund management;
(v) real estate investment trust management;
(b) a corporation registered under paragraph 5(7) of the Second
Schedule to the Securities and Futures (Licensing and
Conduct of Business) Regulations (Cap. 289, Rg 10) as a
Registered Fund Management Company;
(c) a person who is exempted under section 99(1)(a) to (d) and
(h) of the Securities and Futures Act read with paragraph 2, 3,
4 or 5 of the Second Schedule to the Securities and Futures
(Licensing and Conduct of Business) Regulations, from the
requirement to hold a capital markets services licence to carry
out one or more of the regulated activities under
sub‑paragraph (a);
(d) a licensed trust company under the Trust Companies Act
(Cap. 336);
(e) a qualifying collective investment scheme (if it is a person) or
the distributor, manager or trustee of a qualifying collective
investment scheme (if it is not a person); or
(f) any other person that conducts as a business (or is managed
by a person that conducts as a business) one or more of the
activities set out in paragraph 1(j)(1) to (3) of Article 1 of the
Agreement, for or on behalf of a customer.
(2) In paragraph (1), “dealing in securities”, “trading in futures
contracts”, “leveraged foreign exchange trading”, “fund
management” and “real estate investment trust management” have
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the meanings given to those expressions in Part II of the Second
Schedule to the Securities and Futures Act.
(3) Paragraph (1)(e) does not apply to a qualifying collective
investment scheme whose only assets are immovable properties
legally or beneficially owned, or legally and beneficially owned, by
the qualifying collective investment scheme or by its distributor,
manager or trustee (as the case may be).
(4) Paragraph (1)(f) does not apply to a person whose only business
assets are immovable properties legally or beneficially owned, or
legally and beneficially owned, by the person.
(5) A person is not an investment entity for the purposes of
paragraph (1) if —
(a) the person is exempt under section 99(1)(h) of the Securities
and Futures Act read with paragraph 2(a) or (e) of the Second
Schedule to the Securities and Futures (Licensing and
Conduct of Business) Regulations, from the requirement to
hold a capital markets services licence and carries on business
in dealing in securities for the person’s own account; or
(b) the person is an NFFE that meets the criteria in
paragraph B(4)(e) of Section VI of Annex I to the Agreement.
Meaning of “specified insurance company”
8. In these Regulations, “specified insurance company” means any
of the following persons that issues, or is obligated to make payment
with respect to a cash value insurance contract or an annuity contract:
(a) a licensed insurer under the Insurance Act (Cap. 142);
(b) a designated financial holding company under the Financial
Holding Companies Act 2013 (Act 13 of 2013) of a licensed
insurer.
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PART 2
OBLIGATIONS IN RELATION TO FINANCIAL ACCOUNTS
Identification obligation
9.—(1) In relation to all financial accounts which a reporting
Singaporean financial institution maintains, the institution must
establish and maintain arrangements that are designed to identify
U.S. reportable accounts.
(2) The institution is treated as having complied with paragraph (1)
only if —
(a) the arrangements meet the due diligence requirements set out
in Annex I to the Agreement; and
(b) where those requirements require anything to be obtained of
any transaction, the institution also keeps all information that
is needed to explain and reconstruct the transaction.
(3) The institution must ensure that all evidence obtained in
accordance with the Agreement together with any information
referred to in paragraph (2)(b), or a record of the steps taken in
accordance with the Agreement, in relation to any financial account is
kept for —
(a) in the case of any evidence or record that relates to any
information which identifies the account holder, any
document establishing a business relation with the account
holder or any correspondence with the account holder, a
period of 5 years after the termination of the business relation
with the customer; or
(b) in the case of any evidence or record that relates to any
transaction, or of any information referred to in
paragraph (2)(b), a period of 5 years after the completion of
the transaction.
(4) A breach of paragraph (1) or (3) is an offence for the purposes of
section 105M of the Act.
(5) An investment entity referred to in regulation 7(1)(e) need not
comply with paragraph (1) in relation to a U.S. reportable account that
is maintained for units in a collective investment scheme that are listed
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for quotation on an approved exchange, if the approved exchange
itself complies with that paragraph in relation to that account.
(6) For the purposes of paragraph (2)(a) —
(a) it may be assumed that the permission referred to in
paragraph H of Section VI of Annex I to the Agreement
has been given; and
(b) a reporting Singaporean financial institution may make the
election referred to in each of the following provisions of
Annex I to the Agreement:
(i) paragraph A of section II;
(ii) paragraph A of section III;
(iii) paragraph A of section IV;
(iv) paragraph A of section V.
(7) A reporting Singaporean financial institution may rely on a third
party to carry out its obligations referred to in paragraphs (1) and (3),
to the extent provided in the U.S. Regulations Relating to Information
Reporting by Foreign Financial Institutions and Withholding on
Certain Payments to Foreign Financial Institutions and Other Foreign
Entities, TD 9657, 79 FR 12812, issued on 6 March 2014 and
corrected on 1 July 2014 and 18 November 2014.
(8) To avoid doubt, when a reporting Singaporean financial
institution relies on a third party to carry out its obligations under
paragraph (7) —
(a) paragraph (2) remains applicable; and
(b) the reporting Singaporean financial institution remains
responsible for compliance with those obligations.
Reporting obligation
10.—(1) A reporting Singaporean financial institution must, in
respect of 2014 and every following calendar year, prepare and
provide to the Comptroller, or a person authorised by the Comptroller
under section 105L of the Act, a return setting out the required
information in relation to every U.S. reportable account that is
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maintained by the institution at any time during the calendar year in
question.
(2) The required information is all the information in relation to the
U.S. reportable account that the Government is required to obtain to
fulfil its obligations under the Agreement with respect to that calendar
year, as described in Articles 2 and 3 of the Agreement.
(3) To avoid doubt, the required information in respect of 2017 and
every following calendar year includes the information described in
paragraph 2(a) of Article 2 of the Agreement in relation to every U.S.
reportable account maintained by the reporting Singaporean financial
institution as at 30 June 2014.
(4) If, during the calendar year in question, the reporting
Singaporean financial institution maintains no U.S. reportable
accounts, the return must state that fact.
(5) The reporting Singaporean financial institution must send a
return under this regulation to the Comptroller or a person authorised
by the Comptroller under section 105L of the Act, on or before
31st May of the year following the calendar year to which the return
relates, or such further time as the Comptroller may permit.
(6) The return must be furnished in the format described on the
Internet website at http://www.iras.gov.sg/irasHome/fatca/.
(7) An investment entity referred to in regulation 7(1)(e) need not
comply with paragraph (1) in relation to a U.S. reportable account that
is maintained for units in a collective investment scheme that are listed
for quotation on an approved exchange, if the approved exchange
itself complies with that paragraph in relation to that account.
(8) The investment entity referred to in paragraph (7) is considered
as not maintaining the account referred to in that paragraph for the
purposes of paragraph (4), and must accordingly, if it maintains no
other U.S. reportable account, state in its return that it maintains no
U.S. reportable account.
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PART 3
OBLIGATIONS IN RELATION TO PAYMENTS TO
NON‑PARTICIPATING FINANCIAL INSTITUTION
Identification and disclosure obligations
11.—(1) A reporting Singaporean financial institution must
establish and maintain arrangements that are designed to identify
payments which are made —
(a) in the calendar years 2015 and 2016; and
(b) by the institution to non‑participating financial institutions.
(2) Paragraph (1) applies only where the payment is made to a
non‑participating financial institution as an account holder.
(3) In this regulation, “payment” includes amounts credited to a
financial account of a non‑participating financial institution.
(4) A reporting Singaporean financial institution is entitled to regard
a payment made by the institution to a financial institution as made to
someone who is not a non‑participating financial institution only if it
has, in respect of the payment, taken the steps referred to in
paragraph D(3) of Section IV of Annex I to the Agreement.
(5) In paragraphs (1) to (4), “non‑participating financial institution”
includes anyone who is required to be treated as a non‑participating
financial institution as a result of paragraph 5(a) of Article 4 of the
Agreement.
(6) A reporting Singaporean financial institution that comes within
the terms of sub‑paragraph (e) of paragraph 1 of Article 4 of the
Agreement must make a disclosure of information in accordance with
the requirements of that sub‑paragraph.
(7) A breach of paragraph (1) or (6) is an offence for the purposes of
section 105M of the Act.
Reporting obligation
12.—(1) A reporting Singaporean financial institution must, in
respect of each of the calendar years 2015 and 2016, prepare and
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provide to the Comptroller, or a person authorised by the Comptroller
under section 105L of the Act, a return setting out —
(a) the names of the non‑participating financial institutions to
whom payments identified in accordance with regulation 11
have been made in the year in question; and
(b) the total amount of those payments made to each of the
non‑participating financial institutions in question.
(2) In determining the total amount of those payments, the special
rules and definitions in paragraph B(1) of Section I and paragraph C of
Section VI of Annex I to the Agreement must be applied.
(3) If for a calendar year no payments are identified as referred to in
paragraph (1), the reporting Singaporean financial institution must
prepare and provide a return for the calendar year stating that fact.
(4) The reporting Singaporean financial institution must send a
return under this regulation to the Comptroller, or a person authorised
by the Comptroller under section 105L of the Act, on or before
31st May of the year following the calendar year to which the return
relates, or such further time as the Comptroller may permit.
(5) The return must be furnished in the format described on the
Internet website at http://www.iras.gov.sg/irasHome/fatca/.
PART 4
NON‑REPORTING SINGAPOREAN FINANCIAL
INSTITUTIONS, EXEMPT BENEFICIAL OWNERS AND
EXCLUDED ACCOUNTS
Non‑reporting Singaporean financial institutions and exempt
beneficial owners
13.—(1) Sections I to IV of Annex II to the Agreement (which
define “non‑reporting Singaporean financial institution” and “exempt
beneficial owners”) are to be read subject to paragraph (2).
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(2) In Sections I to IV of Annex II to the Agreement —
“central bank” means the Monetary Authority of Singapore
established under section 3 of the Monetary Authority of
Singapore Act (Cap. 186);
“financial institution with a local client base” means a financial
institution that satisfies both of the following:
(a) it is approved as a financial institution under the
Monetary Authority of Singapore Act or licensed or
otherwise regulated under any other written law
specified in the Schedule to that Act;
(b) it satisfies all of the requirements set out in
paragraph A(2) to (10) of Section III of Annex II to
the Agreement;
“governmental entity” includes —
(a) the Government;
(b) every Organ of State;
(c) every entity that is wholly owned (whether directly or
indirectly) and wholly controlled by the Government,
including GIC Private Limited, GIC (Realty) Pte. Ltd.,
GIC (Ventures) Pte. Ltd., and their wholly owned
subsidiaries;
(d) every statutory body; and
(e) every entity that is wholly owned (whether directly or
indirectly) and wholly controlled by a statutory body;
“investment entity established in Singapore that is regulated as a
collective investment vehicle” means a qualifying collective
investment scheme (if it is a person) or the distributor,
manager or trustee of a qualifying collective investment
scheme (if it is not a person);
“local bank” means a financial institution (within the meaning of
regulation 4(1)) that satisfies both of the following:
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(a) it is either —
(i) a bank regulated under the Banking Act
(Cap. 19); or
(ii) a credit society registered under the Co‑operative
Societies Act (Cap. 62);
(b) it satisfies all of the requirements set out in
paragraph B(2) to (5) of Section III of Annex II to the
Agreement.
(3) In paragraph (2), “statutory body” means any authority
established by or under any Act whose income is exempt from tax
by reason of section 13(1)(e) of the Act, and includes a Town Council
established under the Town Councils Act (Cap. 329A).
(4) For the purposes of these Regulations, the reference in
paragraph 1(o) of Article 1 of the Agreement (definition of
“non‑reporting Singaporean financial institution”) to an exempt
beneficial owner under relevant U.S. Treasury Regulations in effect
on the date of signature of the Agreement includes Temasek Holdings
Pte Ltd and special purpose vehicles wholly owned (whether directly
or indirectly) by it.
Accounts that are not U.S. reportable accounts
14.—(1) Without limiting the generality of paragraph A of
Section V of Annex II to the Agreement, the following are excluded
from the definition of “financial accounts” and are accordingly not
“U.S. reportable accounts”:
(a) any account maintained by a financial institution in which is
deposited money withdrawn from an ordinary or special
account of the Fund under any scheme in accordance with the
CPF Investment Regulations, or an investment made under
such scheme, the proceeds or benefits of which are required to
be repaid into the Fund or a CPF Investment Account;
(b) any insurance policy or investment‑linked insurance policy
which is an investment made under any scheme in accordance
with the CPF Investment Regulations, the proceeds or
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benefits of which are required to be repaid into the Fund or a
CPF Investment Account;
(c) any other investment made under any scheme in accordance
with the CPF Investment Regulations, the proceeds or
benefits of which are required to be repaid into the Fund or
a CPF Investment Account;
(d) any approved annuity purchased under section 15(6C)(b)(ii)
of the CPF Act the surrender or residual value of which is
required to be paid into the Fund;
(e) any pension, annuity or other benefit approved by the Board
for the purposes of section 15(8)(e) of the CPF Act the
surrender or residual value of which is required to be paid into
the Fund;
(f) any account maintained by a bank approved by the Board for
the purposes of section 15 of the CPF Act, in which is
deposited moneys under section 15(6C)(b)(i) of that Act and
any interest on those moneys;
(g) a Child Development Account as defined in regulation 2 of
the Child Development Co-Savings Regulations (Cap. 38A,
Rg 2);
(h) an Edusave account as defined in section 2 of the Education
Endowment and Savings Schemes Act (Cap. 87A);
(i) a PSE account as defined in section 2 of the Education
Endowment and Savings Schemes Act.
(2) In paragraph (1) —
“Board” means the Central Provident Fund Board constituted
under section 3 of the CPF Act;
“CPF Act” means the Central Provident Fund Act (Cap. 36);
“CPF Investment Account” has the meaning given to that
expression in the CPF Investment Regulations;
“CPF Investment Regulations” means the Central Provident
Fund (Investment Schemes) Regulations (Cap. 36, Rg 9);
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“Fund” means the Central Provident Fund established under
section 6 of the CPF Act.
(3) In paragraph B of Section V of Annex II to the Agreement,
“certain term life insurance contracts” means life policies (as defined
in section 2 of the Insurance Act (Cap. 142)) each of which has a
coverage period that will end before the insured individual attains the
age of 90, and which satisfies all of the requirements in
paragraph B(1) to (4) of Section V of Annex II to the Agreement.
(4) Any account maintained by a financial institution for an exempt
beneficial owner is not a U.S. reportable account.
(5) The reference in paragraph (4) to an account maintained for an
exempt beneficial owner, in a case where the exempt beneficial owner
is a governmental entity referred to in Section I of Annex II to the
Agreement read with the definition of that term in regulation 13(2),
includes an account maintained for any Government fund, statutory
fund, or other fund administered by a governmental entity, and
includes (to avoid doubt) the Financial Sector Development Fund
established under section 30A of the Monetary Authority of
Singapore Act (Cap. 186).
THE SCHEDULE
Agreement Between The Government Of The Republic Of Singapore And
The Government Of The United States Of America To Improve International
Tax Compliance And To Implement FATCA
Whereas, the Government of the Republic of Singapore and the Government of the
United States of America (each, a “Party,” and together, the “Parties”) desire to
conclude an agreement to improve international tax compliance;
Whereas, the United States of America enacted provisions commonly known as the
Foreign Account Tax Compliance Act (“FATCA”), which introduce a reporting
regime for financial institutions with respect to certain accounts;
Whereas, the Government of the Republic of Singapore is supportive of the
underlying policy goal of FATCA to improve tax compliance;
Whereas, FATCA has raised a number of issues, including that Singaporean
financial institutions may not be able to comply with certain aspects of FATCA due
to domestic legal impediments;
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THE SCHEDULE — continued
Whereas, the Parties are committed to working together over the longer term
towards achieving common reporting and due diligence standards for financial
institutions;
Whereas, the Government of the United States of America acknowledges the need
to coordinate the reporting obligations under FATCA with other U.S. tax reporting
obligations of Singaporean financial institutions to avoid duplicative reporting;
Whereas, an intergovernmental approach to FATCA implementation would
address legal impediments and reduce burdens for Singaporean financial
institutions;
Whereas, the Parties desire to conclude an agreement to improve international tax
compliance and provide for the implementation of FATCA based on domestic
reporting and automatic exchange, subject to the confidentiality and other
protections provided for herein, including the provisions limiting the use of the
information exchanged;
Now, therefore, the Parties have agreed as follows:
Article 1
Definitions
1. For purposes of this agreement and any annexes thereto (“Agreement”), the
following terms shall have the meanings set forth below:
(a) The term “United States” means the United States of America, including
the States thereof, but does not include the U.S. Territories. Any reference
to a “State” of the United States includes the District of Columbia.
(b) The term “U.S. Territory” means American Samoa, the Commonwealth
of the Northern Mariana Islands, Guam, the Commonwealth of Puerto
Rico, or the U.S. Virgin Islands.
(c) The term “IRS” means the U.S. Internal Revenue Service.
(d) The term “Singapore” means the Republic of Singapore.
(e) The term “Partner Jurisdiction” means a jurisdiction that has in effect an
agreement with the United States to facilitate the implementation of
FATCA. The IRS shall publish a list identifying all Partner Jurisdictions.
(f) The term “Competent Authority” means:
(1) in the case of the United States, the Secretary of the Treasury or his
delegate; and
(2) in the case of Singapore, the Minister for Finance or his authorized
representative.
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THE SCHEDULE — continued
(g) The term “Financial Institution” means a Custodial Institution, a
Depository Institution, an Investment Entity, or a Specified Insurance
Company.
(h) The term “Custodial Institution” means any Entity that holds, as a
substantial portion of its business, financial assets for the account of
others. An entity holds financial assets for the account of others as a
substantial portion of its business if the entity’s gross income attributable
to the holding of financial assets and related financial services equals or
exceeds 20 percent of the entity’s gross income during the shorter of: (i)
the three‑year period that ends on December 31 (or the final day of a
non‑calendar year accounting period) prior to the year in which the
determination is being made; or (ii) the period during which the entity has
been in existence.
(i) The term “Depository Institution” means any Entity that accepts
deposits in the ordinary course of a banking or similar business.
(j) The term “Investment Entity” means any Entity that conducts as a
business (or is managed by an entity that conducts as a business) one or
more of the following activities or operations for or on behalf of a
customer:
(1) trading in money market instruments (cheques, bills, certificates
of deposit, derivatives, etc.); foreign exchange; exchange, interest
rate and index instruments; transferable securities; or commodity
futures trading;
(2) individual and collective portfolio management; or
(3) otherwise investing, administering, or managing funds or money
on behalf of other persons.
This subparagraph 1(j) shall be interpreted in a manner consistent with
similar language set forth in the definition of “financial institution” in the
Financial Action Task Force Recommendations.
(k) The term “Specified Insurance Company” means any Entity that is an
insurance company (or the holding company of an insurance company)
that issues, or is obligated to make payments with respect to, a Cash Value
Insurance Contract or an Annuity Contract.
(l) The term “Singaporean Financial Institution” means (i) any Financial
Institution resident in or organized under the laws of Singapore, but
excluding any branch of such Financial Institution that is located outside
Singapore, and (ii) any branch of a Financial Institution not resident in or
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THE SCHEDULE — continued
organized under the laws of Singapore, if such branch is located in
Singapore.
(m) The term “Partner Jurisdiction Financial Institution” means (i) any
Financial Institution established in a Partner Jurisdiction, but excluding
any branch of such Financial Institution that is located outside the Partner
Jurisdiction, and (ii) any branch of a Financial Institution not established
in the Partner Jurisdiction, if such branch is located in the Partner
Jurisdiction.
(n) The term “Reporting Singaporean Financial Institution” means any
Singaporean Financial Institution that is not a Non‑Reporting
Singaporean Financial Institution.
(o) The term “Non‑Reporting Singaporean Financial Institution” means
any Singaporean Financial Institution, or other Entity resident in
Singapore, that is described in Annex II as a Non‑Reporting
Singaporean Financial Institution or that otherwise qualifies as a
deemed‑compliant FFI or an exempt beneficial owner under relevant
U.S. Treasury Regulations in effect on the date of signature of this
Agreement.
(p) The term “Nonparticipating Financial Institution” means a
nonparticipating FFI, as that term is defined in relevant U.S. Treasury
Regulations, but does not include a Singaporean Financial Institution or
other Partner Jurisdiction Financial Institution other than a Financial
Institution treated as a Nonparticipating Financial Institution pursuant to
subparagraph 3(b) of Article 5 of this Agreement or the corresponding
provision in an agreement between the United States and a Partner
Jurisdiction.
(q) The term “Financial Account” means an account maintained by a
Financial Institution, and includes:
(1) in the case of an Entity that is a Financial Institution solely because
it is an Investment Entity, any equity or debt interest (other than
interests that are regularly traded on an established securities
market) in the Financial Institution;
(2) in the case of a Financial Institution not described in
subparagraph 1(q)(1) of this Article, any equity or debt interest
in the Financial Institution (other than interests that are regularly
traded on an established securities market), if (i) the value of the
debt or equity interest is determined, directly or indirectly,
primarily by reference to assets that give rise to U.S. Source
Withholdable Payments, and (ii) the class of interests was
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established with a purpose of avoiding reporting in accordance
with this Agreement; and
(3) any Cash Value Insurance Contract and any Annuity Contract
issued or maintained by a Financial Institution, other than a
noninvestment‑linked, nontransferable immediate life annuity that
is issued to an individual and monetizes a pension or disability
benefit provided under an account that is excluded from the
definition of Financial Account in Annex II.
Notwithstanding the foregoing, the term “Financial Account” does not
include any account that is excluded from the definition of Financial
Account in Annex II. For purposes of this Agreement, interests are
“regularly traded” if there is a meaningful volume of trading with respect
to the interests on an ongoing basis, and an “established securities
market” means an exchange that is officially recognized and supervised
by a governmental authority in which the market is located and that has a
meaningful annual value of shares traded on the exchange. For purposes
of this subparagraph 1(q), an interest in a Financial Institution is not
“regularly traded” and shall be treated as a Financial Account if the
holder of the interest (other than a Financial Institution acting as an
intermediary) is registered on the books of such Financial Institution.
The preceding sentence will not apply to interests first registered on the
books of such Financial Institution prior to July 1, 2014, and with
respect to interests first registered on the books of such Financial
Institution on or after July 1, 2014, a Financial Institution is not required
to apply the preceding sentence prior to January 1, 2016.
(r) The term “Depository Account” includes any commercial, checking,
savings, time, or thrift account, or an account that is evidenced by a
certificate of deposit, thrift certificate, investment certificate, certificate of
indebtedness, or other similar instrument maintained by a Financial
Institution in the ordinary course of a banking or similar business. A
Depository Account also includes an amount held by an insurance
company pursuant to a guaranteed investment contract or similar
agreement to pay or credit interest thereon.
(s) The term “Custodial Account” means an account (other than an
Insurance Contract or Annuity Contract) for the benefit of another
person that holds any financial instrument or contract held for investment
(including, but not limited to, a share or stock in a corporation, a note,
bond, debenture, or other evidence of indebtedness, a currency or
commodity transaction, a credit default swap, a swap based upon a
nonfinancial index, a notional principal contract, an Insurance Contract or
Annuity Contract, and any option or other derivative instrument).
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(t) The term “Equity Interest” means, in the case of a partnership that is a
Financial Institution, either a capital or profits interest in the partnership.
In the case of a trust that is a Financial Institution, an Equity Interest is
considered to be held by any person treated as a settlor or beneficiary of all
or a portion of the trust, or any other natural person exercising ultimate
effective control over the trust. A Specified U.S. Person shall be treated as
being a beneficiary of a foreign trust if such Specified U.S. Person has the
right to receive directly or indirectly (for example, through a nominee) a
mandatory distribution or may receive, directly or indirectly, a
discretionary distribution from the trust.
(u) The term “Insurance Contract” means a contract (other than an Annuity
Contract) under which the issuer agrees to pay an amount upon the
occurrence of a specified contingency involving mortality, morbidity,
accident, liability, or property risk.
(v) The term “Annuity Contract” means a contract under which the issuer
agrees to make payments for a period of time determined in whole or in
part by reference to the life expectancy of one or more individuals. The
term also includes a contract that is considered to be an Annuity Contract
in accordance with the law, regulation, or practice of the jurisdiction in
which the contract was issued, and under which the issuer agrees to make
payments for a term of years.
(w) The term “Cash Value Insurance Contract” means an Insurance
Contract (other than an indemnity reinsurance contract between two
insurance companies) that has a Cash Value greater than $50,000.
(x) The term “Cash Value” means the greater of (i) the amount that the
policyholder is entitled to receive upon surrender or termination of the
contract (determined without reduction for any surrender charge or policy
loan), and (ii) the amount the policyholder can borrow under or with
regard to the contract. Notwithstanding the foregoing, the term “Cash
Value” does not include an amount payable under an Insurance Contract
as:
(1) a personal injury or sickness benefit or other benefit providing
indemnification of an economic loss incurred upon the occurrence
of the event insured against;
(2) a refund to the policyholder of a previously paid premium under
an Insurance Contract (other than under a life insurance contract)
due to policy cancellation or termination, decrease in risk
exposure during the effective period of the Insurance Contract,
or arising from a redetermination of the premium due to correction
of posting or other similar error; or
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(3) a policyholder dividend based upon the underwriting experience
of the contract or group involved.
(y) The term “U.S. Reportable Account” means a Financial Account
maintained by a Reporting Singaporean Financial Institution and held by
one or more Specified U.S. Persons or by a Non‑U.S. Entity with one or
more Controlling Persons that is a Specified U.S. Person.
Notwithstanding the foregoing, an account shall not be treated as a
U.S. Reportable Account if such account is not identified as a U.S.
Reportable Account after application of the due diligence procedures in
Annex I.
(z) The term “Account Holder” means the person listed or identified as the
holder of a Financial Account by the Financial Institution that maintains
the account. A person, other than a Financial Institution, holding a
Financial Account for the benefit or account of another person as agent,
custodian, nominee, signatory, investment advisor, or intermediary, is not
treated as holding the account for purposes of this Agreement, and such
other person is treated as holding the account. For purposes of the
immediately preceding sentence, the term “Financial Institution” does not
include a Financial Institution organized or incorporated in a U.S.
Territory. In the case of a Cash Value Insurance Contract or an Annuity
Contract, the Account Holder is any person entitled to access the Cash
Value or change the beneficiary of the contract. If no person can access the
Cash Value or change the beneficiary, the Account Holder is any person
named as the owner in the contract and any person with a vested
entitlement to payment under the terms of the contract. Upon the maturity
of a Cash Value Insurance Contract or an Annuity Contract, each person
entitled to receive a payment under the contract is treated as an Account
Holder.
(aa) The term “U.S. Person” means a U.S. citizen or resident individual, a
partnership or corporation organized in the United States or under the laws
of the United States or any State thereof, a trust if (i) a court within the
United States would have authority under applicable law to render orders
or judgments concerning substantially all issues regarding administration
of the trust, and (ii) one or more U.S. persons have the authority to control
all substantial decisions of the trust, or an estate of a decedent that is a
citizen or resident of the United States. This subparagraph 1(aa) shall be
interpreted in accordance with the U.S. Internal Revenue Code.
(bb) The term “Specified U.S. Person” means a U.S. Person, other than: (i) a
corporation the stock of which is regularly traded on one or more
established securities markets; (ii) any corporation that is a member of the
same expanded affiliated group, as defined in section 1471(e)(2) of the
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U.S. Internal Revenue Code, as a corporation described in clause (i); (iii)
the United States or any wholly owned agency or instrumentality thereof;
(iv) any State of the United States, any U.S. Territory, any political
subdivision of any of the foregoing, or any wholly owned agency or
instrumentality of any one or more of the foregoing; (v) any organization
exempt from taxation under section 501(a) of the U.S. Internal Revenue
Code or an individual retirement plan as defined in section 7701(a)(37) of
the U.S. Internal Revenue Code; (vi) any bank as defined in section 581 of
the U.S. Internal Revenue Code; (vii) any real estate investment trust as
defined in section 856 of the U.S. Internal Revenue Code; (viii) any
regulated investment company as defined in section 851 of the U.S.
Internal Revenue Code or any entity registered with the U.S. Securities
and Exchange Commission under the Investment Company Act of 1940
(15 U.S.C. 80a‑64); (ix) any common trust fund as defined in
section 584(a) of the U.S. Internal Revenue Code; (x) any trust that is
exempt from tax under section 664(c) of the U.S. Internal Revenue Code
or that is described in section 4947(a)(1) of the U.S. Internal Revenue
Code; (xi) a dealer in securities, commodities, or derivative financial
instruments (including notional principal contracts, futures, forwards, and
options) that is registered as such under the laws of the United States or
any State; (xii) a broker as defined in section 6045(c) of the U.S. Internal
Revenue Code; or (xiii) any tax‑exempt trust under a plan that is described
in section 403(b) or section 457(g) of the U.S. Internal Revenue Code.
(cc) The term “Entity” means a legal person or a legal arrangement such as a
trust.
(dd) The term “Non‑U.S. Entity” means an Entity that is not a U.S. Person.
(ee) The term “U.S. Source Withholdable Payment” means any payment of
interest (including any original issue discount), dividends, rents, salaries,
wages, premiums, annuities, compensations, remunerations, emoluments,
and other fixed or determinable annual or periodical gains, profits, and
income, if such payment is from sources within the United States.
Notwithstanding the foregoing, a U.S. Source Withholdable Payment
does not include any payment that is not treated as a withholdable
payment in relevant U.S. Treasury Regulations.
(ff) An Entity is a “Related Entity” of another Entity if either Entity controls
the other Entity, or the two Entities are under common control. For this
purpose control includes direct or indirect ownership of more than
50 percent of the vote or value in an Entity. Notwithstanding the
foregoing, Singapore may treat an Entity as not a Related Entity of another
Entity if the two Entities are not members of the same expanded affiliated
group as defined in section 1471(e)(2) of the U.S. Internal Revenue Code.
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(gg) The term “U.S. TIN” means a U.S. federal taxpayer identifying number.
(hh) The term “Controlling Persons” means the natural persons who exercise
control over an Entity. In the case of a trust, such term means the settlor,
the trustees, the protector (if any), the beneficiaries or class of
beneficiaries, and any other natural person exercising ultimate effective
control over the trust, and in the case of a legal arrangement other than a
trust, such term means persons in equivalent or similar positions. The term
“Controlling Persons” shall be interpreted in a manner consistent with the
Financial Action Task Force Recommendations.
2. Any term not otherwise defined in this Agreement shall, unless the context
otherwise requires or the Competent Authorities agree to a common meaning (as
permitted by domestic law), have the meaning that it has at that time under the law
of the Party applying this Agreement, any meaning under the applicable tax laws of
that Party prevailing over a meaning given to the term under other laws of that
Party.
Article 2
Obligations to Obtain and Exchange Information with Respect to U.S.
Reportable Accounts
1. Subject to the provisions of Article 3 of this Agreement, Singapore shall obtain
the information specified in paragraph 2 of this Article with respect to all U.S.
Reportable Accounts and shall annually exchange this information with the United
States on an automatic basis.
2. The information to be obtained and exchanged with respect to each U.S.
Reportable Account of each Reporting Singaporean Financial Institution is:
(a) the name, address, and U.S. TIN of each Specified U.S. Person that is an
Account Holder of such account and, in the case of a Non‑U.S. Entity that,
after application of the due diligence procedures set forth in Annex I, is
identified as having one or more Controlling Persons that is a Specified
U.S. Person, the name, address, and U.S. TIN (if any) of such entity and
each such Specified U.S. Person;
(b) the account number (or functional equivalent in the absence of an account
number);
(c) the name and identifying number of the Reporting Singaporean Financial
Institution;
(d) the account balance or value (including, in the case of a Cash Value
Insurance Contract or Annuity Contract, the Cash Value or surrender
value) as of the end of the relevant calendar year or other appropriate
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reporting period or, if the account was closed during such year,
immediately before closure;
(e) in the case of any Custodial Account:
(1) the total gross amount of interest, the total gross amount of
dividends, and the total gross amount of other income generated
with respect to the assets held in the account, in each case paid or
credited to the account (or with respect to the account) during the
calendar year or other appropriate reporting period; and
(2) the total gross proceeds from the sale or redemption of property
paid or credited to the account during the calendar year or other
appropriate reporting period with respect to which the Reporting
Singaporean Financial Institution acted as a custodian, broker,
nominee, or otherwise as an agent for the Account Holder;
(f) in the case of any Depository Account, the total gross amount of interest
paid or credited to the account during the calendar year or other
appropriate reporting period; and
(g) in the case of any account not described in subparagraph 2(e) or 2(f) of this
Article, the total gross amount paid or credited to the Account Holder with
respect to the account during the calendar year or other appropriate
reporting period with respect to which the Reporting Singaporean
Financial Institution is the obligor or debtor, including the aggregate
amount of any redemption payments made to the Account Holder during
the calendar year or other appropriate reporting period.
Article 3
Time and Manner of Exchange of Information
1. For purposes of the exchange obligation in Article 2 of this Agreement, the
amount and characterization of payments made with respect to a U.S. Reportable
Account may be determined in accordance with the principles of the tax laws of
Singapore.
2. For purposes of the exchange obligation in Article 2 of this Agreement, the
information exchanged shall identify the currency in which each relevant amount is
denominated.
3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be
obtained and exchanged with respect to 2014 and all subsequent years, except that:
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(a) the information to be obtained and exchanged with respect to 2014 is only
the information described in subparagraphs 2(a) through 2(d) of Article 2
of this Agreement;
(b) the information to be obtained and exchanged with respect to 2015 is the
information described in subparagraphs 2(a) through 2(g) of Article 2 of
this Agreement, except for gross proceeds described in
subparagraph 2(e)(2) of Article 2 of this Agreement; and
(c) the information to be obtained and exchanged with respect to 2016 and
subsequent years is the information described in subparagraphs 2(a)
through 2(g) of Article 2 of this Agreement.
4. Notwithstanding paragraph 3 of this Article, with respect to each U.S.
Reportable Account maintained by a Reporting Singaporean Financial Institution
as of June 30, 2014, and subject to paragraph 3 of Article 6 of this Agreement,
Singapore is not required to obtain and include in the exchanged information the
U.S. TIN of any relevant person if such U.S. TIN is not in the records of the
Reporting Singaporean Financial Institution. In such a case, Singapore shall obtain
and include in the exchanged information the date of birth of the relevant person, if
the Reporting Singaporean Financial Institution has such date of birth in its
records.
5. Subject to paragraphs 3 and 4 of this Article, the information described in
Article 2 of this Agreement shall be exchanged within nine months after the end of
the calendar year to which the information relates.
6. The Competent Authorities of Singapore and the United States shall enter into
an agreement or arrangement under the mutual agreement procedure provided for
in Article 8 of this Agreement, which shall:
(a) establish the procedures for the automatic exchange obligations described
in Article 2 of this Agreement;
(b) prescribe rules and procedures as may be necessary to implement Article 5
of this Agreement; and
(c) establish as necessary procedures for the exchange of the information
reported under subparagraph 1(b) of Article 4 of this Agreement.
7. All information exchanged shall be subject to the confidentiality and other
protections provided for in Article 9 of this Agreement, including the provisions
limiting the use of the information exchanged.
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Article 4
Application of FATCA to Singaporean Financial Institutions
1. Treatment of Reporting Singaporean Financial Institutions. Each
Reporting Singaporean Financial Institution shall be treated as complying with,
and not subject to withholding under, section 1471 of the U.S. Internal Revenue
Code if Singapore complies with its obligations under Articles 2 and 3 of this
Agreement with respect to such Reporting Singaporean Financial Institution, and
the Reporting Singaporean Financial Institution:
(a) identifies U.S. Reportable Accounts and reports annually to the
Singaporean Competent Authority the information required to be
reported in paragraph 2 of Article 2 of this Agreement in the time and
manner described in Article 3 of this Agreement;
(b) for each of 2015 and 2016, reports annually to the Singaporean
Competent Authority the name of each Nonparticipating Financial
Institution to which it has made payments and the aggregate amount of
such payments;
(c) complies with the applicable registration requirements on the IRS FATCA
registration website;
(d) to the extent that a Reporting Singaporean Financial Institution is (i)
acting as a qualified intermediary (for purposes of section 1441 of the U.S.
Internal Revenue Code) that has elected to assume primary withholding
responsibility under chapter 3 of subtitle A of the U.S. Internal Revenue
Code, (ii) a foreign partnership that has elected to act as a withholding
foreign partnership (for purposes of both sections 1441 and 1471 of the
U.S. Internal Revenue Code), or (iii) a foreign trust that has elected to act
as a withholding foreign trust (for purposes of both sections 1441 and
1471 of the U.S. Internal Revenue Code), withholds 30 percent of any
U.S. Source Withholdable Payment to any Nonparticipating Financial
Institution; and
(e) in the case of a Reporting Singaporean Financial Institution that is not
described in subparagraph 1(d) of this Article and that makes a payment
of, or acts as an intermediary with respect to, a U.S. Source Withholdable
Payment to any Nonparticipating Financial Institution, the Reporting
Singaporean Financial Institution provides to any immediate payor of
such U.S. Source Withholdable Payment the information required for
withholding and reporting to occur with respect to such payment.
Notwithstanding the foregoing, a Reporting Singaporean Financial Institution with
respect to which the conditions of this paragraph 1 are not satisfied shall not be
subject to withholding under section 1471 of the U.S. Internal Revenue Code
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unless such Reporting Singaporean Financial Institution is treated by the IRS as a
Nonparticipating Financial Institution pursuant to subparagraph 3(b) of Article 5 of
this Agreement.
2. Suspension of Rules Relating to Recalcitrant Accounts. The United States
shall not require a Reporting Singaporean Financial Institution to withhold tax
under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an
account held by a recalcitrant account holder (as defined in section 1471(d)(6) of
the U.S. Internal Revenue Code), or to close such account, if the U.S. Competent
Authority receives the information set forth in paragraph 2 of Article 2 of this
Agreement, subject to the provisions of Article 3 of this Agreement, with respect to
such account.
3. Specific Treatment of Singaporean Retirement Plans. The United States
shall treat as deemed‑compliant FFIs or exempt beneficial owners, as appropriate,
for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code,
Singaporean retirement plans described in Annex II. For this purpose, a
Singaporean retirement plan includes an Entity established or located in, and
regulated by, Singapore, or a predetermined contractual or legal arrangement,
operated to provide pension or retirement benefits or earn income for providing
such benefits under the laws of Singapore and regulated with respect to
contributions, distributions, reporting, sponsorship, and taxation.
4. Identification and Treatment of Other Deemed‑Compliant FFIs and
Exempt Beneficial Owners. The United States shall treat each Non‑Reporting
Singaporean Financial Institution as a deemed‑compliant FFI or as an exempt
beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal
Revenue Code.
5. Special Rules Regarding Related Entities and Branches That Are
Nonparticipating Financial Institutions. If a Singaporean Financial Institution,
that otherwise meets the requirements described in paragraph 1 of this Article or is
described in paragraph 3 or 4 of this Article, has a Related Entity or branch that
operates in a jurisdiction that prevents such Related Entity or branch from fulfilling
the requirements of a participating FFI or deemed‑compliant FFI for purposes of
section 1471 of the U.S. Internal Revenue Code or has a Related Entity or branch
that is treated as a Nonparticipating Financial Institution solely due to the
expiration of the transitional rule for limited FFIs and limited branches under
relevant U.S. Treasury Regulations, such Singaporean Financial Institution shall
continue to be in compliance with the terms of this Agreement and shall continue to
be treated as a deemed‑compliant FFI or exempt beneficial owner, as appropriate,
for purposes of section 1471 of the U.S. Internal Revenue Code, provided that:
(a) the Singaporean Financial Institution treats each such Related Entity or
branch as a separate Nonparticipating Financial Institution for purposes of
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all the reporting and withholding requirements of this Agreement and
each such Related Entity or branch identifies itself to withholding agents
as a Nonparticipating Financial Institution;
(b) each such Related Entity or branch identifies its U.S. accounts and reports
the information with respect to those accounts as required under
section 1471 of the U.S. Internal Revenue Code to the extent permitted
under the relevant laws pertaining to the Related Entity or branch; and
(c) such Related Entity or branch does not specifically solicit U.S. accounts
held by persons that are not resident in the jurisdiction where such Related
Entity or branch is located or accounts held by Nonparticipating Financial
Institutions that are not established in the jurisdiction where such Related
Entity or branch is located, and such Related Entity or branch is not used
by the Singaporean Financial Institution or any other Related Entity to
circumvent the obligations under this Agreement or under section 1471 of
the U.S. Internal Revenue Code, as appropriate.
6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 of
this Agreement:
(a) Singapore shall not be obligated to obtain and exchange information with
respect to a calendar year that is prior to the calendar year with respect to
which similar information is required to be reported to the IRS by
participating FFIs pursuant to relevant U.S. Treasury Regulations; and
(b) Singapore shall not be obligated to begin exchanging information prior to
the date by which participating FFIs are required to report similar
information to the IRS under relevant U.S. Treasury Regulations.
7. Coordination of Definitions with U.S. Treasury Regulations.
Notwithstanding Article 1 of this Agreement and the definitions provided in the
Annexes to this Agreement, in implementing this Agreement, Singapore may use,
and may permit Singaporean Financial Institutions to use, a definition in relevant
U.S. Treasury Regulations in lieu of a corresponding definition in this Agreement,
provided that such application would not frustrate the purposes of this Agreement.
Article 5
Collaboration on Compliance and Enforcement
1. General Inquiries. Subject to any further terms set forth in a competent
authority agreement concluded pursuant to paragraph 6 of Article 3 of this
Agreement, the U.S. Competent Authority may make follow‑up requests to the
Singaporean Competent Authority, pursuant to which the Singaporean Competent
Authority shall obtain and provide additional information with respect to a U.S.
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Reportable Account, including the account statements prepared in the ordinary
course of a Reporting Singaporean Financial Institution’s business that summarize
the activity (including withdrawals, transfers, and closures) of the U.S. Reportable
Account.
2. Minor and Administrative Errors. The U.S. Competent Authority shall
notify the Singaporean Competent Authority when the U.S. Competent Authority
has reason to believe that administrative errors or other minor errors may have led
to incorrect or incomplete information reporting or resulted in other infringements
of this Agreement. The Singaporean Competent Authority shall apply its domestic
law (including applicable penalties) to obtain corrected and/or complete
information or to resolve other infringements of this Agreement.
3. Significant Non‑Compliance.
(a) The U.S. Competent Authority shall notify the Singaporean Competent
Authority when the U.S. Competent Authority has determined that there
is significant non‑compliance with the obligations under this Agreement
with respect to a Reporting Singaporean Financial Institution. The
Singaporean Competent Authority shall apply its domestic law (including
applicable penalties) to address the significant non‑compliance described
in the notice.
(b) If such enforcement actions do not resolve the non‑compliance within a
period of 18 months after notification of significant non‑compliance is
first provided by the U.S. Competent Authority, the United States shall
treat the Reporting Singaporean Financial Institution as a
Nonparticipating Financial Institution pursuant to this subparagraph 3(b).
4. Reliance on Third Party Service Providers. Singapore may allow Reporting
Singaporean Financial Institutions to use third party service providers to fulfill the
obligations imposed on such Reporting Singaporean Financial Institutions by
Singapore, as contemplated in this Agreement, but these obligations shall remain
the responsibility of the Reporting Singaporean Financial Institutions.
5. Prevention of Avoidance. Singapore shall implement as necessary
requirements to prevent Financial Institutions from adopting practices intended
to circumvent the reporting required under this Agreement.
Article 6
Mutual Commitment to Continue to Enhance the Effectiveness of Information
Exchange and Transparency
1. Treatment of Passthru Payments and Gross Proceeds. The Parties are
committed to work together, along with Partner Jurisdictions, to develop a practical
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and effective alternative approach to achieve the policy objectives of foreign
passthru payment and gross proceeds withholding that minimizes burden.
2. Development of Common Reporting and Exchange Model. The Parties are
committed to working with Partner Jurisdictions and the Organisation for
Economic Co‑operation and Development on adapting the terms of this
Agreement and other agreements between the United States and Partner
Jurisdictions to a common model for automatic exchange of information,
including the development of reporting and due diligence standards for financial
institutions.
3. Documentation of Accounts Maintained as of June 30, 2014. With respect
to U.S. Reportable Accounts maintained by a Reporting Singaporean Financial
Institution as of June 30, 2014, Singapore commits to establish, by January 1,
2017, for reporting with respect to 2017 and subsequent years, rules requiring
Reporting Singaporean Financial Institutions to obtain the U.S. TIN of each
Specified U.S. Person as required pursuant to subparagraph 2(a) of Article 2 of this
Agreement.
Article 7
Consistency in the Application of FATCA to Partner Jurisdictions
1. Singapore shall be granted the benefit of any more favorable terms under
Article 4 or Annex I of this Agreement relating to the application of FATCA to
Singaporean Financial Institutions afforded to another Partner Jurisdiction under a
signed bilateral agreement pursuant to which the other Partner Jurisdiction
commits to undertake the same obligations as Singapore described in Articles 2 and
3 of this Agreement, and subject to the same terms and conditions as described
therein and in Articles 5, 6, 7, 10 and 11 of this Agreement.
2. The United States shall notify Singapore of any such more favorable terms,
and such more favorable terms shall apply automatically under this Agreement as if
such terms were specified in this Agreement and effective as of the date of
signature of the agreement incorporating the more favorable terms, unless
Singapore declines in writing the application thereof.
Article 8
Mutual Agreement Procedure
1. Where difficulties or doubts arise between the Parties regarding the
implementation, application, or interpretation of this Agreement, the Competent
Authorities shall endeavor to resolve the matter by mutual agreement.
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2. The Competent Authorities may adopt and implement procedures to facilitate
the implementation of this Agreement.
3. The Competent Authorities may communicate with each other directly for
purposes of reaching a mutual agreement under this Article.
Article 9
Confidentiality
1. The Singaporean Competent Authority shall treat any information received
from the United States pursuant to Article 5 of this Agreement as confidential and
shall only disclose such information as may be necessary to carry out its
obligations under this Agreement. Such information may be disclosed in
connection with court proceedings related to the performance of the obligations
of Singapore under this Agreement.
2. Information provided to the U.S. Competent Authority pursuant to Articles 2
and 5 of this Agreement shall be treated as confidential and may be disclosed only
to persons or authorities (including courts and administrative bodies) of the
Government of the United States concerned with the assessment, collection, or
administration of, the enforcement or prosecution in respect of, or the
determination of appeals in relation to, U.S. federal taxes, or the oversight of
such functions. Such persons or authorities shall use such information only for such
purposes. Such persons may disclose the information in public court proceedings
or in judicial decisions. The information may not be disclosed to any other person,
entity, authority, or jurisdiction.
Article 10
Consultations and Amendments
1. In case any difficulties in the implementation of this Agreement arise, either
Party may, independently of the mutual agreement procedure described in
paragraph 1 of Article 8 of this Agreement, request consultations to develop
appropriate measures to ensure the fulfillment of this Agreement.
2. This Agreement may be amended by written mutual agreement of the Parties.
Unless otherwise agreed upon, such an amendment shall enter into force through
the same procedures as set forth in paragraph 1 of Article 12 of this Agreement.
Article 11
Annexes
The Annexes form an integral part of this Agreement.
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Article 12
Term of Agreement
1. This Agreement shall enter into force on the date of Singapore’s written
notification to the United States that Singapore has completed its necessary internal
procedures for entry into force of this Agreement.
2. Either Party may terminate this Agreement by giving notice of termination in
writing to the other Party. Such termination shall become effective on the first day
of the month following the expiration of a period of 12 months after the date of the
notice of termination.
3. The Parties shall, prior to December 31, 2016, consult in good faith to amend
this Agreement as necessary to reflect progress on the commitments set forth in
Article 6 of this Agreement.
4. If this Agreement is terminated, both Parties shall remain bound by the
provisions of Article 9 of this Agreement with respect to any information obtained
under this Agreement.
In witness whereof, the undersigned, being duly authorized thereto by their
respective Governments, have signed this Agreement.
Done at Singapore, in duplicate, in the English language, this 9th day of
December, 2014.
FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE
REPUBLIC OF SINGAPORE:
UNITED STATES OF AMERICA:
ANNEX I
DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING
AND REPORTING ON U.S. REPORTABLE ACCOUNTS AND
ON PAYMENTS TO CERTAIN NONPARTICIPATING
FINANCIAL INSTITUTIONS
I. General.
A. Singapore shall require that Reporting Singaporean Financial
Institutions apply the due diligence procedures contained in this
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Annex I to identify U.S. Reportable Accounts and accounts held by
Nonparticipating Financial Institutions.
B. For purposes of the Agreement,
1. All dollar amounts are in U.S. dollars and shall be read to
include the equivalent in other currencies.
2. Except as otherwise provided herein, the balance or value of an
account shall be determined as of the last day of the calendar
year or other appropriate reporting period.
3. Where a balance or value threshold is to be determined as of
June 30, 2014 under this Annex I, the relevant balance or value
shall be determined as of that day or the last day of the reporting
period ending immediately before June 30, 2014, and where a
balance or value threshold is to be determined as of the last day
of a calendar year under this Annex I, the relevant balance or
value shall be determined as of the last day of the calendar year
or other appropriate reporting period.
4. Subject to subparagraph E(1) of section II of this Annex I, an
account shall be treated as a U.S. Reportable Account beginning
as of the date it is identified as such pursuant to the due diligence
procedures in this Annex I.
5. Unless otherwise provided, information with respect to a U.S.
Reportable Account shall be reported annually in the calendar
year following the year to which the information relates.
C. As an alternative to the procedures described in each section of this
Annex I, Singapore may permit Reporting Singaporean Financial
Institutions to rely on the procedures described in relevant U.S.
Treasury Regulations to establish whether an account is a U.S.
Reportable Account or an account held by a Nonparticipating
Financial Institution. Singapore may permit Reporting Singaporean
Financial Institutions to make such election separately for each
section of this Annex I either with respect to all relevant Financial
Accounts or, separately, with respect to any clearly identified group of
such accounts (such as by line of business or the location of where the
account is maintained).
II. Preexisting Individual Accounts. The following rules and procedures
apply for purposes of identifying U.S. Reportable Accounts among
Preexisting Accounts held by individuals (“Preexisting Individual
Accounts”).
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A. Accounts Not Required to Be Reviewed, Identified, or Reported.
Unless the Reporting Singaporean Financial Institution elects
otherwise, either with respect to all Preexisting Individual Accounts
or, separately, with respect to any clearly identified group of such
accounts, where the implementing rules in Singapore provide for such
an election, the following Preexisting Individual Accounts are not
required to be reviewed, identified, or reported as U.S. Reportable
Accounts:
1. Subject to subparagraph E(2) of this section, a Preexisting
Individual Account with a balance or value that does not exceed
$50,000 as of June 30, 2014.
2. Subject to subparagraph E(2) of this section, a Preexisting
Individual Account that is a Cash Value Insurance Contract or an
Annuity Contract with a balance or value of $250,000 or less as
of June 30, 2014.
3. A Preexisting Individual Account that is a Cash Value Insurance
Contract or an Annuity Contract, provided the law or regulations
of Singapore or the United States effectively prevent the sale of
such a Cash Value Insurance Contract or an Annuity Contract to
U.S. residents (e.g., if the relevant Financial Institution does not
have the required registration under U.S. law, and the law of
Singapore requires reporting or withholding with respect to
insurance products held by residents of Singapore).
4. A Depository Account with a balance of $50,000 or less.
B. Review Procedures for Preexisting Individual Accounts With a
Balance or Value as of June 30, 2014, that Exceeds $50,000
($250,000 for a Cash Value Insurance Contract or Annuity
Contract), But Does Not Exceed $1,000,000 (“Lower Value
Accounts”).
1. Electronic Record Search. The Reporting Singaporean
Financial Institution must review electronically searchable
data maintained by the Reporting Singaporean Financial
Institution for any of the following U.S. indicia:
(a) Identification of the Account Holder as a U.S. citizen or
resident;
(b) Unambiguous indication of a U.S. place of birth;
(c) Current U.S. mailing or residence address (including a
U.S. post office box);
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(d) Current U.S. telephone number;
(e) Standing instructions to transfer funds to an account
maintained in the United States;
(f) Currently effective power of attorney or signatory
authority granted to a person with a U.S. address; or
(g) An “in‑care‑of” or “hold mail” address that is the sole
address the Reporting Singaporean Financial Institution
has on file for the Account Holder. In the case of a
Preexisting Individual Account that is a Lower Value
Account, an “in‑care‑of” address outside the United States
or “hold mail” address shall not be treated as U.S. indicia.
2. If none of the U.S. indicia listed in subparagraph B(1) of this
section are discovered in the electronic search, then no further
action is required until there is a change in circumstances that
results in one or more U.S. indicia being associated with the
account, or the account becomes a High Value Account
described in paragraph D of this section.
3. If any of the U.S. indicia listed in subparagraph B(1) of this
section are discovered in the electronic search, or if there is a
change in circumstances that results in one or more U.S. indicia
being associated with the account, then the Reporting
Singaporean Financial Institution must treat the account as a
U.S. Reportable Account unless it elects to apply
subparagraph B(4) of this section and one of the exceptions in
such subparagraph applies with respect to that account.
4. Notwithstanding a finding of U.S. indicia under
subparagraph B(1) of this section, a Reporting Singaporean
Financial Institution is not required to treat an account as a U.S.
Reportable Account if:
(a) Where the Account Holder information unambiguously
indicates a U.S. place of birth, the Reporting Singaporean
Financial Institution obtains, or has previously reviewed
and maintains a record of:
(1) A self‑certification that the Account Holder is neither
a U.S. citizen nor a U.S. resident for tax purposes
(which may be on an IRS Form W‑8 or other similar
agreed form);
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(2) A non‑U.S. passport or other government‑issued
identification evidencing the Account Holder’s
citizenship or nationality in a country other than the
United States; and
(3) A copy of the Account Holder’s Certificate of Loss of
Nationality of the United States or a reasonable
explanation of:
(a) The reason the Account Holder does not have
such a certificate despite relinquishing U.S.
citizenship; or
(b) The reason the Account Holder did not obtain
U.S. citizenship at birth.
(b) Where the Account Holder information contains a current
U.S. mailing or residence address, or one or more U.S.
telephone numbers that are the only telephone numbers
associated with the account, the Reporting Singaporean
Financial Institution obtains, or has previously reviewed
and maintains a record of:
(1) A self‑certification that the Account Holder is neither
a U.S. citizen nor a U.S. resident for tax purposes
(which may be on an IRS Form W‑8 or other similar
agreed form); and
(2) Documentary evidence, as defined in paragraph D of
section VI of this Annex I, establishing the Account
Holder’s non‑U.S. status.
(c) Where the Account Holder information contains standing
instructions to transfer funds to an account maintained
in the United States, the Reporting Singaporean Financial
Institution obtains, or has previously reviewed and
maintains a record of:
(1) A self‑certification that the Account Holder is neither
a U.S. citizen nor a U.S. resident for tax purposes
(which may be on an IRS Form W‑8 or other similar
agreed form); and
(2) Documentary evidence, as defined in paragraph D of
section VI of this Annex I, establishing the Account
Holder’s non‑U.S. status.
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(d) Where the Account Holder information contains a
currently effective power of attorney or signatory
authority granted to a person with a U.S. address, has
an “in‑care‑of” address or “hold mail” address that is the
sole address identified for the Account Holder, or has one
or more U.S. telephone numbers (if a non‑U.S. telephone
number is also associated with the account), the
Reporting Singaporean Financial Institution obtains, or
has previously reviewed and maintains a record of:
(1) A self‑certification that the Account Holder is neither
a U.S. citizen nor a U.S. resident for tax purposes
(which may be on an IRS Form W‑8 or other similar
agreed form); or
(2) Documentary evidence, as defined in paragraph D of
section VI of this Annex I, establishing the Account
Holder’s non‑U.S. status.
C. Additional Procedures Applicable to Preexisting Individual
Accounts That Are Lower Value Accounts.
1. Review of Preexisting Individual Accounts that are Lower Value
Accounts for U.S. indicia must be completed by June 30, 2016.
2. If there is a change of circumstances with respect to a
Preexisting Individual Account that is a Lower Value Account
that results in one or more U.S. indicia described in
subparagraph B(1) of this section being associated with the
account, then the Reporting Singaporean Financial Institution
must treat the account as a U.S. Reportable Account unless
subparagraph B(4) of this section applies.
3. Except for Depository Accounts described in subparagraph A(4)
of this section, any Preexisting Individual Account that has been
identified as a U.S. Reportable Account under this section shall
be treated as a U.S. Reportable Account in all subsequent years,
unless the Account Holder ceases to be a Specified U.S. Person.
D. Enhanced Review Procedures for Preexisting Individual
Accounts With a Balance or Value That Exceeds $1,000,000 as
of June 30, 2014, or December 31 of 2015 or Any Subsequent Year
(“High Value Accounts”).
1. Electronic Record Search. The Reporting Singaporean
Financial Institution must review electronically searchable
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data maintained by the Reporting Singaporean Financial
Institution for any of the U.S. indicia described in
subparagraph B(1) of this section.
2. Paper Record Search. If the Reporting Singaporean Financial
Institution’s electronically searchable databases include fields
for, and capture all of the information described in,
subparagraph D(3) of this section, then no further paper
record search is required. If the electronic databases do not
capture all of this information, then with respect to a High Value
Account, the Reporting Singaporean Financial Institution must
also review the current customer master file and, to the extent
not contained in the current customer master file, the following
documents associated with the account and obtained by the
Reporting Singaporean Financial Institution within the last five
years for any of the U.S. indicia described in subparagraph B(1)
of this section:
(a) The most recent documentary evidence collected with
respect to the account;
(b) The most recent
documentation;
account
opening
contract
or
(c) The most recent documentation obtained by the Reporting
Singaporean Financial Institution pursuant to AML/KYC
Procedures or for other regulatory purposes;
(d) Any power of attorney or signature authority forms
currently in effect; and
(e) Any standing instructions to transfer funds currently in
effect.
3. Exception Where Databases Contain Sufficient Information.
A Reporting Singaporean Financial Institution is not required to
perform the paper record search described in subparagraph D(2)
of this section if the Reporting Singaporean Financial
Institution’s electronically searchable information includes the
following:
(a) The Account Holder’s nationality or residence status;
(b) The Account Holder’s residence address and mailing
address currently on file with the Reporting Singaporean
Financial Institution;
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(c) The Account Holder’s telephone number(s) currently on
file, if any, with the Reporting Singaporean Financial
Institution;
(d) Whether there are standing instructions to transfer funds in
the account to another account (including an account at
another branch of the Reporting Singaporean Financial
Institution or another Financial Institution);
(e) Whether there is a current “in‑care‑of” address or “hold
mail” address for the Account Holder; and
(f) Whether there is any power of attorney or signatory
authority for the account.
4. Relationship Manager Inquiry for Actual Knowledge. In
addition to the electronic and paper record searches described
above, the Reporting Singaporean Financial Institution must
treat as a U.S. Reportable Account any High Value Account
assigned to a relationship manager (including any Financial
Accounts aggregated with such High Value Account) if the
relationship manager has actual knowledge that the Account
Holder is a Specified U.S. Person.
5. Effect of Finding U.S. Indicia.
(a) If none of the U.S. indicia listed in subparagraph B(1) of
this section are discovered in the enhanced review of High
Value Accounts described above, and the account is not
identified as held by a Specified U.S. Person in
subparagraph D(4) of this section, then no further action
is required until there is a change in circumstances that
results in one or more U.S. indicia being associated with
the account.
(b) If any of the U.S. indicia listed in subparagraph B(1) of this
section are discovered in the enhanced review of High
Value Accounts described above, or if there is a subsequent
change in circumstances that results in one or more U.S.
indicia being associated with the account, then the
Reporting Singaporean Financial Institution must treat
the account as a U.S. Reportable Account unless it elects to
apply subparagraph B(4) of this section and one of the
exceptions in such subparagraph applies with respect to
that account.
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(c) Except for Depository Accounts described in
subparagraph A(4) of this section, any Preexisting
Individual Account that has been identified as a U.S.
Reportable Account under this section shall be treated as a
U.S. Reportable Account in all subsequent years, unless
the Account Holder ceases to be a Specified U.S. Person.
E. Additional Procedures Applicable to High Value Accounts.
1. If a Preexisting Individual Account is a High Value Account as
of June 30, 2014, the Reporting Singaporean Financial
Institution must complete the enhanced review procedures
described in paragraph D of this section with respect to such
account by June 30, 2015. If based on this review such account
is identified as a U.S. Reportable Account on or before
December 31, 2014, the Reporting Singaporean Financial
Institution must report the required information about such
account with respect to 2014 in the first report on the account
and on an annual basis thereafter. In the case of an account
identified as a U.S. Reportable Account after December 31,
2014 and on or before June 30, 2015, the Reporting Singaporean
Financial Institution is not required to report information about
such account with respect to 2014, but must report information
about the account on an annual basis thereafter.
2. If a Preexisting Individual Account is not a High Value Account
as of June 30, 2014, but becomes a High Value Account as of the
last day of 2015 or any subsequent calendar year, the Reporting
Singaporean Financial Institution must complete the enhanced
review procedures described in paragraph D of this section with
respect to such account within six months after the last day of the
calendar year in which the account becomes a High Value
Account. If based on this review such account is identified as a
U.S. Reportable Account, the Reporting Singaporean Financial
Institution must report the required information about such
account with respect to the year in which it is identified as a U.S.
Reportable Account and subsequent years on an annual basis,
unless the Account Holder ceases to be a Specified U.S. Person.
3. Once a Reporting Singaporean Financial Institution applies the
enhanced review procedures described in paragraph D of this
section to a High Value Account, the Reporting Singaporean
Financial Institution is not required to re‑apply such procedures,
other than the relationship manager inquiry described in
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THE SCHEDULE — continued
subparagraph D(4) of this section, to the same High Value
Account in any subsequent year.
4. If there is a change of circumstances with respect to a High
Value Account that results in one or more U.S. indicia described
in subparagraph B(1) of this section being associated with the
account, then the Reporting Singaporean Financial Institution
must treat the account as a U.S. Reportable Account unless it
elects to apply subparagraph B(4) of this section and one of the
exceptions in such subparagraph applies with respect to that
account.
5. A Reporting Singaporean Financial Institution must implement
procedures to ensure that a relationship manager identifies any
change in circumstances of an account. For example, if a
relationship manager is notified that the Account Holder has a
new mailing address in the United States, the Reporting
Singaporean Financial Institution is required to treat the new
address as a change in circumstances and, if it elects to apply
subparagraph B(4) of this section, is required to obtain the
appropriate documentation from the Account Holder.
F. Preexisting Individual Accounts That Have Been Documented for
Certain Other Purposes. A Reporting Singaporean Financial
Institution that has previously obtained documentation from an
Account Holder to establish the Account Holder’s status as neither a
U.S. citizen nor a U.S. resident in order to meet its obligations under a
qualified intermediary, withholding foreign partnership, or
withholding foreign trust agreement with the IRS, or to fulfill its
obligations under chapter 61 of Title 26 of the United States Code, is
not required to perform the procedures described in
subparagraph B(1) of this section with respect to Lower Value
Accounts or subparagraphs D(1) through D(3) of this section with
respect to High Value Accounts.
III. New Individual Accounts. The following rules and procedures apply for
purposes of identifying U.S. Reportable Accounts among Financial
Accounts held by individuals and opened on or after July 1, 2014
(“New Individual Accounts”).
A. Accounts Not Required to Be Reviewed, Identified, or Reported.
Unless the Reporting Singaporean Financial Institution elects
otherwise, either with respect to all New Individual Accounts or,
separately, with respect to any clearly identified group of such
accounts, where the implementing rules in Singapore provide for such
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an election, the following New Individual Accounts are not required
to be reviewed, identified, or reported as U.S. Reportable Accounts:
1. A Depository Account unless the account balance exceeds
$50,000 at the end of any calendar year or other appropriate
reporting period.
2. A Cash Value Insurance Contract unless the Cash Value exceeds
$50,000 at the end of any calendar year or other appropriate
reporting period.
B. Other New Individual Accounts. With respect to New Individual
Accounts not described in paragraph A of this section, upon account
opening (or within 90 days after the end of the calendar year in which
the account ceases to be described in paragraph A of this section), the
Reporting Singaporean Financial Institution must obtain a
self‑certification, which may be part of the account opening
documentation, that allows the Reporting Singaporean Financial
Institution to determine whether the Account Holder is resident in the
United States for tax purposes (for this purpose, a U.S. citizen is
considered to be resident in the United States for tax purposes, even if
the Account Holder is also a tax resident of another jurisdiction) and
confirm the reasonableness of such self‑certification based on the
information obtained by the Reporting Singaporean Financial
Institution in connection with the opening of the account, including
any documentation collected pursuant to AML/KYC Procedures.
1. If the self‑certification establishes that the Account Holder is
resident in the United States for tax purposes, the Reporting
Singaporean Financial Institution must treat the account as a
U.S. Reportable Account and obtain a self‑certification that
includes the Account Holder’s U.S. TIN (which may be an IRS
Form W‑9 or other similar agreed form).
2. If there is a change of circumstances with respect to a New
Individual Account that causes the Reporting Singaporean
Financial Institution to know, or have reason to know, that the
original self‑certification is incorrect or unreliable, the
Reporting Singaporean Financial Institution cannot rely on the
original self‑certification and must obtain a valid
self‑certification that establishes whether the Account Holder
is a U.S. citizen or resident for U.S. tax purposes. If the
Reporting Singaporean Financial Institution is unable to obtain a
valid self‑certification, the Reporting Singaporean Financial
Institution must treat the account as a U.S. Reportable Account.
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IV. Preexisting Entity Accounts. The following rules and procedures apply
for purposes of identifying U.S. Reportable Accounts and accounts held by
Nonparticipating Financial Institutions among Preexisting Accounts held
by Entities (“Preexisting Entity Accounts”).
A. Entity Accounts Not Required to Be Reviewed, Identified or
Reported. Unless the Reporting Singaporean Financial Institution
elects otherwise, either with respect to all Preexisting Entity Accounts
or, separately, with respect to any clearly identified group of such
accounts, where the implementing rules in Singapore provide for such
an election, a Preexisting Entity Account with an account balance or
value that does not exceed $250,000 as of June 30, 2014, is not
required to be reviewed, identified, or reported as a U.S. Reportable
Account until the account balance or value exceeds $1,000,000.
B. Entity Accounts Subject to Review. A Preexisting Entity Account
that has an account balance or value that exceeds $250,000 as of
June 30, 2014, and a Preexisting Entity Account that does not exceed
$250,000 as of June 30, 2014 but the account balance or value of
which exceeds $1,000,000 as of the last day of 2015 or any
subsequent calendar year, must be reviewed in accordance with the
procedures set forth in paragraph D of this section.
C. Entity Accounts With Respect to Which Reporting Is Required.
With respect to Preexisting Entity Accounts described in paragraph B
of this section, only accounts that are held by one or more Entities that
are Specified U.S. Persons, or by Passive NFFEs with one or more
Controlling Persons who are U.S. citizens or residents, shall be treated
as U.S. Reportable Accounts. In addition, accounts held by
Nonparticipating Financial Institutions shall be treated as accounts
for which aggregate payments as described in subparagraph 1(b) of
Article 4 of the Agreement are reported to the Singaporean Competent
Authority.
D. Review Procedures for Identifying Entity Accounts With Respect
to Which Reporting Is Required. For Preexisting Entity Accounts
described in paragraph B of this section, the Reporting Singaporean
Financial Institution must apply the following review procedures to
determine whether the account is held by one or more Specified U.S.
Persons, by Passive NFFEs with one or more Controlling Persons
who are U.S. citizens or residents, or by Nonparticipating Financial
Institutions:
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1. Determine Whether the Entity Is a Specified U.S. Person.
(a) Review information maintained for regulatory or customer
relationship purposes (including information collected
pursuant to AML/KYC Procedures) to determine
whether the information indicates that the Account
Holder is a U.S. Person. For this purpose, information
indicating that the Account Holder is a U.S. Person
includes a U.S. place of incorporation or organization, or a
U.S. address.
(b) If the information indicates that the Account Holder is a
U.S. Person, the Reporting Singaporean Financial
Institution must treat the account as a U.S. Reportable
Account unless it obtains a self‑certification from the
Account Holder (which may be on an IRS Form W‑8 or
W‑9, or a similar agreed form), or reasonably determines
based on information in its possession or that is publicly
available, that the Account Holder is not a Specified U.S.
Person.
2. Determine Whether a Non‑U.S. Entity Is a Financial
Institution.
(a) Review information maintained for regulatory or customer
relationship purposes (including information collected
pursuant to AML/KYC Procedures) to determine
whether the information indicates that the Account
Holder is a Financial Institution.
(b) If the information indicates that the Account Holder is a
Financial Institution, or the Reporting Singaporean
Financial Institution verifies the Account Holder’s
Global Intermediary Identification Number on the
published IRS FFI list, then the account is not a U.S.
Reportable Account.
3. Determine Whether a Financial Institution Is a
Nonparticipating Financial Institution Payments to Which
Are
Subject
to
Aggregate
Reporting
Under
Subparagraph 1(b) of Article 4 of the Agreement.
(a) Subject to subparagraph D(3)(b) of this section, a
Reporting Singaporean Financial Institution may
determine that the Account Holder is a Singaporean
Financial Institution or other Partner Jurisdiction
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THE SCHEDULE — continued
Financial Institution if the Reporting Singaporean
Financial Institution reasonably determines that the
Account Holder has such status on the basis of the
Account Holder’s Global Intermediary Identification
Number on the published IRS FFI list or other
information that is publicly available or in the possession
of the Reporting Singaporean Financial Institution, as
applicable. In such case, no further review, identification,
or reporting is required with respect to the account.
(b) If the Account Holder is a Singaporean Financial
Institution or other Partner Jurisdiction Financial
Institution treated by the IRS as a Nonparticipating
Financial Institution, then the account is not a U.S.
Reportable Account, but payments to the Account
Holder must be reported as contemplated in
subparagraph 1(b) of Article 4 of the Agreement.
(c) If the Account Holder is not a Singaporean Financial
Institution or other Partner Jurisdiction Financial
Institution, then the Reporting Singaporean Financial
Institution must treat the Account Holder as a
Nonparticipating Financial Institution payments to which
are reportable under subparagraph 1(b) of Article 4 of the
Agreement, unless the Reporting Singaporean Financial
Institution:
(1) Obtains a self‑certification (which may be on an IRS
Form W‑8 or similar agreed form) from the Account
Holder that it is a certified deemed‑compliant FFI, or
an exempt beneficial owner, as those terms are
defined in relevant U.S. Treasury Regulations; or
(2) In the case of a participating FFI or registered
deemed‑compliant FFI, verifies the Account
Holder’s Global Intermediary Identification
Number on the published IRS FFI list.
4. Determine Whether an Account Held by an NFFE Is a U.S.
Reportable Account. With respect to an Account Holder of a
Preexisting Entity Account that is not identified as either a U.S.
Person or a Financial Institution, the Reporting Singaporean
Financial Institution must identify (i) whether the Account
Holder has Controlling Persons, (ii) whether the Account Holder
is a Passive NFFE, and (iii) whether any of the Controlling
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Persons of the Account Holder is a U.S. citizen or resident. In
making these determinations the Reporting Singaporean
Financial Institution must follow the guidance in
subparagraphs D(4)(a) through D(4)(d) of this section in the
order most appropriate under the circumstances.
(a) For purposes of determining the Controlling Persons of an
Account Holder, a Reporting Singaporean Financial
Institution may rely on information collected and
maintained pursuant to AML/KYC Procedures.
(b) For purposes of determining whether the Account Holder
is a Passive NFFE, the Reporting Singaporean Financial
Institution must obtain a self‑certification (which may be
on an IRS Form W‑8 or W‑9, or on a similar agreed form)
from the Account Holder to establish its status, unless it
has information in its possession or that is publicly
available, based on which it can reasonably determine
that the Account Holder is an Active NFFE.
(c) For purposes of determining whether a Controlling Person
of a Passive NFFE is a U.S. citizen or resident for tax
purposes, a Reporting Singaporean Financial Institution
may rely on:
(1) Information collected and maintained pursuant to
AML/KYC Procedures in the case of a Preexisting
Entity Account held by one or more NFFEs with an
account balance or value that does not exceed
$1,000,000; or
(2) A self‑certification (which may be on an IRS Form
W‑8 or W‑9, or on a similar agreed form) from the
Account Holder or such Controlling Person in the
case of a Preexisting Entity Account held by one or
more NFFEs with an account balance or value that
exceeds $1,000,000.
(d) If any Controlling Person of a Passive NFFE is a U.S. citizen or
resident, the account shall be treated as a U.S. Reportable
Account.
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E. Timing of Review and Additional Procedures Applicable to
Preexisting Entity Accounts.
1. Review of Preexisting Entity Accounts with an account balance
or value that exceeds $250,000 as of June 30, 2014 must be
completed by June 30, 2016.
2. Review of Preexisting Entity Accounts with an account balance
or value that does not exceed $250,000 as of June 30, 2014, but
exceeds $1,000,000 as of December 31 of 2015 or any
subsequent year, must be completed within six months after
the last day of the calendar year in which the account balance or
value exceeds $1,000,000.
3. If there is a change of circumstances with respect to a
Preexisting Entity Account that causes the Reporting
Singaporean Financial Institution to know, or have reason to
know, that the self‑certification or other documentation
associated with an account is incorrect or unreliable, the
Reporting Singaporean Financial Institution must redetermine
the status of the account in accordance with the procedures set
forth in paragraph D of this section.
V. New Entity Accounts. The following rules and procedures apply for
purposes of identifying U.S. Reportable Accounts and accounts held by
Nonparticipating Financial Institutions among Financial Accounts held by
Entities and opened on or after July 1, 2014 (“New Entity Accounts”).
A. Entity Accounts Not Required to Be Reviewed, Identified or
Reported. Unless the Reporting Singaporean Financial Institution
elects otherwise, either with respect to all New Entity Accounts or,
separately, with respect to any clearly identified group of such
accounts, where the implementing rules in Singapore provide for such
election, a credit card account or a revolving credit facility treated as a
New Entity Account is not required to be reviewed, identified, or
reported, provided that the Reporting Singaporean Financial
Institution maintaining such account implements policies and
procedures to prevent an account balance owed to the Account
Holder that exceeds $50,000.
B. Other New Entity Accounts. With respect to New Entity Accounts
not described in paragraph A of this section, the Reporting
Singaporean Financial Institution must determine whether the
Account Holder is: (i) a Specified U.S. Person; (ii) a Singaporean
Financial Institution or other Partner Jurisdiction Financial
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Institution; (iii) a participating FFI, a deemed‑compliant FFI, or an
exempt beneficial owner, as those terms are defined in relevant U.S.
Treasury Regulations; or (iv) an Active NFFE or Passive NFFE.
1. Subject to subparagraph B(2) of this section, a Reporting
Singaporean Financial Institution may determine that the
Account Holder is an Active NFFE, a Singaporean Financial
Institution, or other Partner Jurisdiction Financial Institution if
the Reporting Singaporean Financial Institution reasonably
determines that the Account Holder has such status on the
basis of the Account Holder’s Global Intermediary
Identification Number or other information that is publicly
available or in the possession of the Reporting Singaporean
Financial Institution, as applicable.
2. If the Account Holder is a Singaporean Financial Institution or
other Partner Jurisdiction Financial Institution treated by the IRS
as a Nonparticipating Financial Institution, then the account is
not a U.S. Reportable Account, but payments to the Account
Holder must be reported as contemplated in subparagraph 1(b)
of Article 4 of the Agreement.
3. In all other cases, a Reporting Singaporean Financial Institution
must obtain a self‑certification from the Account Holder to
establish the Account Holder’s status. Based on the
self‑certification, the following rules apply:
(a) If the Account Holder is a Specified U.S. Person, the
Reporting Singaporean Financial Institution must treat the
account as a U.S. Reportable Account.
(b) If the Account Holder is a Passive NFFE, the Reporting
Singaporean Financial Institution must identify the
Controlling Persons as determined under AML/KYC
Procedures, and must determine whether any such
person is a U.S. citizen or resident on the basis of a
self‑certification from the Account Holder or such person.
If any such person is a U.S. citizen or resident, the
Reporting Singaporean Financial Institution must treat the
account as a U.S. Reportable Account.
(c) If the Account Holder is: (i) a U.S. Person that is not a
Specified U.S. Person; (ii) subject to subparagraph B(3)(d)
of this section, a Singaporean Financial Institution or other
Partner Jurisdiction Financial Institution; (iii) a
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participating FFI, a deemed‑compliant FFI, or an exempt
beneficial owner, as those terms are defined in relevant
U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a
Passive NFFE none of the Controlling Persons of which is
a U.S. citizen or resident, then the account is not a U.S.
Reportable Account, and no reporting is required with
respect to the account.
(d) If the Account Holder is a Nonparticipating Financial
Institution (including a Singaporean Financial Institution
or other Partner Jurisdiction Financial Institution treated by
the IRS as a Nonparticipating Financial Institution), then
the account is not a U.S. Reportable Account, but
payments to the Account Holder must be reported as
contemplated in subparagraph 1(b) of Article 4 of the
Agreement.
VI. Special Rules and Definitions. The following additional rules and
definitions apply in implementing the due diligence procedures described
above:
A. Reliance on Self‑Certifications and Documentary Evidence. A
Reporting Singaporean Financial Institution may not rely on a
self‑certification or documentary evidence if the Reporting
Singaporean Financial Institution knows or has reason to know that
the self‑certification or documentary evidence is incorrect or
unreliable.
B. Definitions. The following definitions apply for purposes of this
Annex I.
1. AML/KYC Procedures. “AML/KYC Procedures” means the
customer due diligence procedures of a Reporting Singaporean
Financial Institution pursuant to the anti‑money laundering or
similar requirements of Singapore to which such Reporting
Singaporean Financial Institution is subject.
2. NFFE. An “NFFE” means any Non‑U.S. Entity that is not an
FFI as defined in relevant U.S. Treasury Regulations or is an
Entity described in subparagraph B(4)(j) of this section, and also
includes any Non‑U.S. Entity that is established in Singapore or
another Partner Jurisdiction and that is not a Financial
Institution.
3. Passive NFFE. A “Passive NFFE” means any NFFE that is not
(i) an Active NFFE, or (ii) a withholding foreign partnership or
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withholding foreign trust pursuant to relevant U.S. Treasury
Regulations.
4. Active NFFE. An “Active NFFE” means any NFFE that meets
any of the following criteria:
(a) Less than 50 percent of the NFFE’s gross income for the
preceding calendar year or other appropriate reporting
period is passive income and less than 50 percent of the
assets held by the NFFE during the preceding calendar
year or other appropriate reporting period are assets that
produce or are held for the production of passive income;
(b) The stock of the NFFE is regularly traded on an established
securities market or the NFFE is a Related Entity of an
Entity the stock of which is regularly traded on an
established securities market;
(c) The NFFE is organized in a U.S. Territory and all of the
owners of the payee are bona fide residents of that U.S.
Territory;
(d) The NFFE is a government (other than the U.S.
government), a political subdivision of such government
(which, for the avoidance of doubt, includes a state,
province, county, or municipality), or a public body
performing a function of such government or a political
subdivision thereof, a government of a U.S. Territory, an
international organization, a non‑U.S. central bank of
issue, or an Entity wholly owned by one or more of the
foregoing;
(e) Substantially all of the activities of the NFFE consist of
holding (in whole or in part) the outstanding stock of, or
providing financing and services to, one or more
subsidiaries that engage in trades or businesses other
than the business of a Financial Institution, except that an
Entity shall not qualify for NFFE status if the Entity
functions (or holds itself out) as an investment fund, such
as a private equity fund, venture capital fund, leveraged
buyout fund, or any investment vehicle whose purpose is
to acquire or fund companies and then hold interests in
those companies as capital assets for investment purposes;
(f) The NFFE is not yet operating a business and has no prior
operating history, but is investing capital into assets with
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the intent to operate a business other than that of a
Financial Institution, provided that the NFFE shall not
qualify for this exception after the date that is 24 months
after the date of the initial organization of the NFFE;
(g) The NFFE was not a Financial Institution in the past five
years, and is in the process of liquidating its assets or is
reorganizing with the intent to continue or recommence
operations in a business other than that of a Financial
Institution;
(h) The NFFE primarily engages in financing and hedging
transactions with, or for, Related Entities that are not
Financial Institutions, and does not provide financing or
hedging services to any Entity that is not a Related Entity,
provided that the group of any such Related Entities is
primarily engaged in a business other than that of a
Financial Institution;
(i) The NFFE is an “excepted NFFE” as described in relevant
U.S. Treasury Regulations; or
(j) The NFFE meets all of the following requirements:
i. It is established and operated in its jurisdiction of
residence exclusively for religious, charitable,
scientific, artistic, cultural, athletic, or educational
purposes; or it is established and operated in its
jurisdiction of residence and it is a professional
organization, business league, chamber of
commerce, labor organization, agricultural or
horticultural organization, civic league or an
organization operated exclusively for the promotion
of social welfare;
ii. It is exempt from income tax in its jurisdiction of
residence;
iii. It has no shareholders or members who have a
proprietary or beneficial interest in its income or
assets;
iv. The applicable laws of the NFFE’s jurisdiction of
residence or the NFFE’s formation documents do not
permit any income or assets of the NFFE to be
distributed to, or applied for the benefit of, a private
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person or non‑charitable Entity other than pursuant to
the conduct of the NFFE’s charitable activities, or as
payment of reasonable compensation for services
rendered, or as payment representing the fair market
value of property which the NFFE has purchased;
and
v. The applicable laws of the NFFE’s jurisdiction of
residence or the NFFE’s formation documents
require that, upon the NFFE’s liquidation or
dissolution, all of its assets be distributed to a
governmental
entity
or
other
non‑profit
organization, or escheat to the government of the
NFFE’s jurisdiction of residence or any political
subdivision thereof.
5. Preexisting Account. A “Preexisting Account” means a
Financial Account maintained by a Reporting Singaporean
Financial Institution as of June 30, 2014.
C. Account Balance Aggregation and Currency Translation Rules.
1. Aggregation of Individual Accounts. For purposes of
determining the aggregate balance or value of Financial
Accounts held by an individual, a Reporting Singaporean
Financial Institution is required to aggregate all Financial
Accounts maintained by the Reporting Singaporean Financial
Institution, or by a Related Entity, but only to the extent that the
Reporting Singaporean Financial Institution’s computerized
systems link the Financial Accounts by reference to a data
element such as client number or taxpayer identification
number, and allow account balances or values to be
aggregated. Each holder of a jointly held Financial Account
shall be attributed the entire balance or value of the jointly held
Financial Account for purposes of applying the aggregation
requirements described in this paragraph 1.
2. Aggregation of Entity Accounts. For purposes of determining
the aggregate balance or value of Financial Accounts held by an
Entity, a Reporting Singaporean Financial Institution is required
to take into account all Financial Accounts that are maintained
by the Reporting Singaporean Financial Institution, or by a
Related Entity, but only to the extent that the Reporting
Singaporean Financial Institution’s computerized systems link
the Financial Accounts by reference to a data element such as
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client number or taxpayer identification number, and allow
account balances or values to be aggregated.
3. Special Aggregation Rule Applicable to Relationship
Managers. For purposes of determining the aggregate balance
or value of Financial Accounts held by a person to determine
whether a Financial Account is a High Value Account, a
Reporting Singaporean Financial Institution is also required, in
the case of any Financial Accounts that a relationship manager
knows, or has reason to know, are directly or indirectly owned,
controlled, or established (other than in a fiduciary capacity) by
the same person, to aggregate all such accounts.
4. Currency Translation Rule. For purposes of determining the
balance or value of Financial Accounts denominated in a
currency other than the U.S. dollar, a Reporting Singaporean
Financial Institution must convert the U.S. dollar threshold
amounts described in this Annex I into such currency using a
published spot rate determined as of the last day of the calendar
year preceding the year in which the Reporting Singaporean
Financial Institution is determining the balance or value.
D. Documentary Evidence. For purposes of this Annex I, acceptable
documentary evidence includes any of the following:
1. A certificate of residence issued by an authorized government
body (for example, a government or agency thereof, or a
municipality) of the jurisdiction in which the payee claims to be
a resident.
2. With respect to an individual, any valid identification issued by
an authorized government body (for example, a government or
agency thereof, or a municipality), that includes the individual’s
name and is typically used for identification purposes.
3. With respect to an Entity, any official documentation issued by
an authorized government body (for example, a government or
agency thereof, or a municipality) that includes the name of the
Entity and either the address of its principal office in the
jurisdiction (or U.S. Territory) in which it claims to be a resident
or the jurisdiction (or U.S. Territory) in which the Entity was
incorporated or organized.
4. With respect to a Financial Account maintained in a jurisdiction
with anti‑money laundering rules that have been approved by
the IRS in connection with a QI agreement (as described in
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relevant U.S. Treasury Regulations), any of the documents,
other than a Form W‑8 or W‑9, referenced in the jurisdiction’s
attachment to the QI agreement for identifying individuals or
Entities.
5. Any financial statement, third‑party credit report, bankruptcy
filing, or U.S. Securities and Exchange Commission report.
E. Alternative Procedures for Financial Accounts Held by
Individual Beneficiaries of a Cash Value Insurance Contract. A
Reporting Singaporean Financial Institution may presume that an
individual beneficiary (other than the owner) of a Cash Value
Insurance Contract receiving a death benefit is not a Specified U.S.
Person and may treat such Financial Account as other than a U.S.
Reportable Account unless the Reporting Singaporean Financial
Institution has actual knowledge, or reason to know, that the
beneficiary is a Specified U.S. Person. A Reporting Singaporean
Financial Institution has reason to know that a beneficiary of a Cash
Value Insurance Contract is a Specified U.S. Person if the information
collected by the Reporting Singaporean Financial Institution and
associated with the beneficiary contains U.S. indicia as described in
subparagraph (B)(1) of section II of this Annex I. If a Reporting
Singaporean Financial Institution has actual knowledge, or reason to
know, that the beneficiary is a Specified U.S. Person, the Reporting
Singaporean Financial Institution must follow the procedures in
subparagraph B(3) of section II of this Annex I.
F. Reliance on Third Parties. Regardless of whether an election is
made under paragraph C of section I of this Annex I, Singapore may
permit Reporting Singaporean Financial Institutions to rely on due
diligence procedures performed by third parties, to the extent
provided in relevant U.S. Treasury Regulations.
G. Alternative Procedures for New Accounts Opened Prior to Entry
Into Force of this Agreement.
1. Applicability. If Singapore has provided a written notice to the
United States prior to entry into force of this Agreement that, as
of July 1, 2014, Singapore lacked the legal authority to require
Reporting Singaporean Financial Institutions either: (i) to
require Account Holders of New Individual Accounts to
provide the self‑certification specified in section III of this
Annex I, or (ii) to perform all the due diligence procedures
related to New Entity Accounts specified in section V of this
Annex I, then Reporting Singaporean Financial Institutions may
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apply the alternative procedures described in subparagraph G(2)
of this section, as applicable, to such New Accounts, in lieu of
the procedures otherwise required under this Annex I. The
alternative procedures described in subparagraph G(2) of this
section shall be available only for those New Individual
Accounts or New Entity Accounts, as applicable, opened prior
to the earlier of: (i) the date Singapore has the ability to compel
Reporting Singaporean Financial Institutions to comply with the
due diligence procedures described in section III or section V of
this Annex I, as applicable, which date Singapore shall inform
the United States of in writing by the date of entry into force of
this Agreement, or (ii) the date of entry into force of this
Agreement. If the alternative procedures for New Entity
Accounts opened on or after July 1, 2014, and before
January 1, 2015, described in paragraph H of this section are
applied with respect to all New Entity Accounts or a clearly
identified group of such accounts, the alternative procedures
described in this paragraph G may not be applied with respect to
such New Entity Accounts. For all other New Accounts,
Reporting Singaporean Financial Institutions must apply the
due diligence procedures described in section III or section V of
this Annex I, as applicable, to determine if the account is a U.S.
Reportable Account or an account held by a Nonparticipating
Financial Institution.
2. Alternative Procedures.
(a) Within one year after the date of entry into force of this
Agreement, Reporting Singaporean Financial Institutions
must (i) with respect to a New Individual Account
described in subparagraph G(1) of this section, request
the self‑certification specified in section III of this Annex I
and confirm the reasonableness of such self‑certification
consistent with the procedures described in section III of
this Annex I, and (ii) with respect to a New Entity Account
described in subparagraph G(1) of this section, perform the
due diligence procedures specified in section V of this
Annex I and request information as necessary to document
the account, including any self‑certification, required by
section V of this Annex I.
(b) Singapore must report on any New Account that is
identified pursuant to subparagraph G(2)(a) of this
section as a U.S. Reportable Account or as an account
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held by a Nonparticipating Financial Institution, as
applicable, by the date that is the later of: (i) September
30 next following the date that the account is identified as a
U.S. Reportable Account or as an account held by a
Nonparticipating Financial Institution, as applicable, or (ii)
90 days after the account is identified as a U.S. Reportable
Account or as an account held by a Nonparticipating
Financial Institution, as applicable. The information
required to be reported with respect to such a New
Account is any information that would have been
reportable under this Agreement if the New Account had
been identified as a U.S. Reportable Account or as an
account held by a Nonparticipating Financial Institution,
as applicable, as of the date the account was opened.
(c) By the date that is one year after the date of entry into force
of this Agreement, Reporting Singaporean Financial
Institutions must close any New Account described in
subparagraph G(1) of this section for which it was unable
to collect the required self‑certification or other
documentation pursuant to the procedures described in
subparagraph G(2)(a) of this section. In addition, by the
date that is one year after the date of entry into force of this
Agreement, Reporting Singaporean Financial Institutions
must: (i) with respect to such closed accounts that prior to
such closure were New Individual Accounts (without
regard to whether such accounts were High Value
Accounts), perform the due diligence procedures
specified in paragraph D of section II of this Annex I, or
(ii) with respect to such closed accounts that prior to such
closure were New Entity Accounts, perform the due
diligence procedures specified in section IV of this
Annex I.
(d) Singapore must report on any closed account that is
identified pursuant to subparagraph G(2)(c) of this section
as a U.S. Reportable Account or as an account held by a
Nonparticipating Financial Institution, as applicable, by
the date that is the later of: (i) September 30 next following
the date that the account is identified as a U.S. Reportable
Account or as an account held by a Nonparticipating
Financial Institution, as applicable, or (ii) 90 days after the
account is identified as a U.S. Reportable Account or as an
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account held by a Nonparticipating Financial Institution,
as applicable. The information required to be reported for
such a closed account is any information that would have
been reportable under this Agreement if the account had
been identified as a U.S. Reportable Account or as an
account held by a Nonparticipating Financial Institution,
as applicable, as of the date the account was opened.
H. Alternative Procedures for New Entity Accounts Opened on or
after July 1, 2014, and before January 1, 2015. For New Entity
Accounts opened on or after July 1, 2014, and before January 1, 2015,
either with respect to all New Entity Accounts or, separately, with
respect to any clearly identified group of such accounts, Singapore
may permit Reporting Singaporean Financial Institutions to treat such
accounts as Preexisting Entity Accounts and apply the due diligence
procedures related to Preexisting Entity Accounts specified in
section IV of this Annex I in lieu of the due diligence procedures
specified in section V of this Annex I. In this case, the due diligence
procedures of section IV of this Annex I must be applied without
regard to the account balance or value threshold specified in
paragraph A of section IV of this Annex I.
Annex II
The following Entities shall be treated as exempt beneficial owners or deemed
compliant FFIs, as the case may be, and the following accounts are excluded
from the definition of Financial Accounts.
This Annex II may be modified by a mutual written decision entered into
between the Competent Authorities of Singapore and the United States: (1) to
include additional Entities and accounts that present a low risk of being used by
U.S. Persons to evade U.S. tax and that have similar characteristics to the
Entities and accounts described in this Annex II as of the date of signature of the
Agreement; or (2) to remove Entities and accounts that, due to changes in
circumstances, no longer present a low risk of being used by U.S. Persons to
evade U.S. tax. Any such addition or removal shall be effective on the date of
signature of the mutual decision, unless otherwise provided therein. Procedures
for reaching such a mutual decision may be included in the mutual agreement or
arrangement described in paragraph 6 of Article 3 of the Agreement.
I. Exempt Beneficial Owners other than Funds. The following Entities
shall be treated as Non‑Reporting Singaporean Financial Institutions and
as exempt beneficial owners for purposes of sections 1471 and 1472 of the
U.S. Internal Revenue Code, other than with respect to a payment that is
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derived from an obligation held in connection with a commercial financial
activity of a type engaged in by a Specified Insurance Company, Custodial
Institution, or Depository Institution.
A. Governmental Entity. The government of Singapore, any political
subdivision of Singapore (which, for the avoidance of doubt, includes
a state, province, county, or municipality), or any wholly owned
agency or instrumentality of Singapore or any one or more of the
foregoing (each, a “Singaporean Governmental Entity”). This
category is comprised of the integral parts, controlled entities, and
political subdivisions of Singapore.
1. An integral part of Singapore means any person, organization,
agency, bureau, fund, instrumentality, or other body, however
designated, that constitutes a governing authority of Singapore.
The net earnings of the governing authority must be credited to
its own account or to other accounts of Singapore, with no
portion inuring to the benefit of any private person. An integral
part does not include any individual who is a sovereign, official,
or administrator acting in a private or personal capacity.
2. A controlled entity means an Entity that is separate in form from
Singapore or that otherwise constitutes a separate juridical
entity, provided that:
(a) The Entity is wholly owned and controlled by one or more
Singaporean Governmental Entities directly or through
one or more controlled entities;
(b) The Entity’s net earnings are credited to its own account or
to the accounts of one or more Singaporean Governmental
Entities, with no portion of its income inuring to the
benefit of any private person; and
(c) The Entity’s assets vest in one or more Singaporean
Governmental Entities upon dissolution.
3. Income does not inure to the benefit of private persons if such
persons are the intended beneficiaries of a governmental
program, and the program activities are performed for the
general public with respect to the common welfare or relate to
the administration of some phase of government.
Notwithstanding the foregoing, however, income is
considered to inure to the benefit of private persons if the
income is derived from the use of a governmental entity to
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conduct a commercial business, such as a commercial banking
business, that provides financial services to private persons.
B. International Organization. Any international organization or
wholly owned agency or instrumentality thereof. This category
includes any intergovernmental organization (including a
supranational organization) (1) that is comprised primarily of
non‑U.S. governments; (2) that has in effect a headquarters
agreement with Singapore; and (3) the income of which does not
inure to the benefit of private persons.
C. Central Bank. An institution that is by law or government sanction
the principal authority, other than the government of Singapore itself,
issuing instruments intended to circulate as currency. Such an
institution may include an instrumentality that is separate from the
government of Singapore, whether or not owned in whole or in part
by Singapore.
II. Funds that Qualify as Exempt Beneficial Owners. The following
Entities shall be treated as Non‑Reporting Singaporean Financial
Institutions and as exempt beneficial owners for purposes of
sections 1471 and 1472 of the U.S. Internal Revenue Code.
A. Broad Participation Retirement Fund. A fund established in
Singapore to provide retirement, disability, or death benefits, or any
combination thereof, to beneficiaries that are current or former
employees (or persons designated by such employees) of one or more
employers in consideration for services rendered, provided that the
fund:
1. Does not have a single beneficiary with a right to more than five
percent of the fund’s assets;
2. Is subject to government regulation and provides annual
information reporting about its beneficiaries to the relevant
tax authorities in Singapore; and
3. Satisfies at least one of the following requirements:
(a) The fund is generally exempt from tax in Singapore on
investment income under the laws of Singapore due to its
status as a retirement or pension plan;
(b) The fund receives at least 50 percent of its total
contributions (other than transfers of assets from other
plans described in paragraphs A through C of this section
or from retirement and pension accounts described in
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subparagraph A(1) of section V of this Annex II) from the
sponsoring employers;
(c) Distributions or withdrawals from the fund are allowed
only upon the occurrence of specified events related to
retirement, disability, or death (except rollover
distributions to other retirement funds described in
paragraphs A through C of this section or retirement and
pension accounts described in subparagraph A(1) of
section V of this Annex II), or penalties apply to
distributions or withdrawals made before such specified
events; or
(d) Contributions (other than certain permitted make‑up
contributions) by employees to the fund are limited by
reference to earned income of the employee or may not
exceed $50,000 annually, applying the rules set forth in
Annex I for account aggregation and currency translation.
B. Narrow Participation Retirement Fund. A fund established in
Singapore to provide retirement, disability, or death benefits to
beneficiaries that are current or former employees (or persons
designated by such employees) of one or more employers in
consideration for services rendered, provided that:
1. The fund has fewer than 50 participants;
2. The fund is sponsored by one or more employers that are not
Investment Entities or Passive NFFEs;
3. The employee and employer contributions to the fund (other
than transfers of assets from retirement and pension accounts
described in subparagraph A(1) of section V of this Annex II)
are limited by reference to earned income and compensation of
the employee, respectively;
4. Participants that are not residents of Singapore are not entitled to
more than 20 percent of the fund’s assets; and
5. The fund is subject to government regulation and provides
annual information reporting about its beneficiaries to the
relevant tax authorities in Singapore.
C. Pension Fund of an Exempt Beneficial Owner. A fund established
in Singapore by an exempt beneficial owner to provide retirement,
disability, or death benefits to beneficiaries or participants that are
current or former employees of the exempt beneficial owner (or
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persons designated by such employees), or that are not current or
former employees, if the benefits provided to such beneficiaries or
participants are in consideration of personal services performed for
the exempt beneficial owner.
D. Investment Entity Wholly Owned by Exempt Beneficial Owners.
An Entity that is a Singaporean Financial Institution solely because it
is an Investment Entity, provided that each direct holder of an Equity
Interest in the Entity is an exempt beneficial owner, and each direct
holder of a debt interest in such Entity is either a Depository
Institution (with respect to a loan made to such Entity) or an exempt
beneficial owner.
III. Small or Limited Scope Financial Institutions that Qualify as
Deemed‑Compliant FFIs. The following Financial Institutions are
Non‑Reporting Singaporean Financial Institutions that shall be treated as
deemed‑compliant FFIs for purposes of section 1471 of the U.S. Internal
Revenue Code.
A. Financial Institution with a Local Client Base. A Financial
Institution satisfying the following requirements:
1. The Financial Institution must be licensed and regulated as a
financial institution under the laws of Singapore;
2. The Financial Institution must have no fixed place of business
outside of Singapore. For this purpose, a fixed place of business
does not include a location that is not advertised to the public
and from which the Financial Institution performs solely
administrative support functions;
3. The Financial Institution must not solicit customers or Account
Holders outside Singapore. For this purpose, a Financial
Institution shall not be considered to have solicited customers
or Account Holders outside Singapore merely because the
Financial Institution (a) operates a website, provided that the
website does not specifically indicate that the Financial
Institution provides Financial Accounts or services to
nonresidents, and does not otherwise target or solicit U.S.
customers or Account Holders, or (b) advertises in print media
or on a radio or television station that is distributed or aired
primarily within Singapore but is also incidentally distributed or
aired in other countries, provided that the advertisement does
not specifically indicate that the Financial Institution provides
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Financial Accounts or services to nonresidents, and does not
otherwise target or solicit U.S. customers or Account Holders;
4. The Financial Institution must be required under the laws of
Singapore to identify resident Account Holders for purposes of
either information reporting or withholding of tax with respect
to Financial Accounts held by residents or for purposes of
satisfying Singapore’s AML due diligence requirements;
5. At least 98 percent of the Financial Accounts by value
maintained by the Financial Institution must be held by
residents (including residents that are Entities) of Singapore;
6. Beginning on or before July 1, 2014, the Financial Institution
must have policies and procedures, consistent with those set
forth in Annex I, to prevent the Financial Institution from
providing a Financial Account to any Nonparticipating
Financial Institution and to monitor whether the Financial
Institution opens or maintains a Financial Account for any
Specified U.S. Person who is not a resident of Singapore
(including a U.S. Person that was a resident of Singapore when
the Financial Account was opened but subsequently ceases to be
a resident of Singapore) or any Passive NFFE with Controlling
Persons who are U.S. residents or U.S. citizens who are not
residents of Singapore;
7. Such policies and procedures must provide that if any Financial
Account held by a Specified U.S. Person who is not a resident of
Singapore or by a Passive NFFE with Controlling Persons who
are U.S. residents or U.S. citizens who are not residents of
Singapore is identified, the Financial Institution must report
such Financial Account as would be required if the Financial
Institution were a Reporting Singaporean Financial Institution
(including by following the applicable registration requirements
on the IRS FATCA registration website) or close such Financial
Account;
8. With respect to a Preexisting Account held by an individual who
is not a resident of Singapore or by an Entity, the Financial
Institution must review those Preexisting Accounts in
accordance with the procedures set forth in Annex I
applicable to Preexisting Accounts to identify any U.S.
Reportable Account or Financial Account held by a
Nonparticipating Financial Institution, and must report such
Financial Account as would be required if the Financial
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Institution were a Reporting Singaporean Financial Institution
(including by following the applicable registration requirements
on the IRS FATCA registration website) or close such Financial
Account;
9. Each Related Entity of the Financial Institution that is a
Financial Institution must be incorporated or organized in
Singapore and, with the exception of any Related Entity that is a
retirement fund described in paragraphs A through C of
section II of this Annex II, satisfy the requirements set forth
in this paragraph A; and
10. The Financial Institution must not have policies or practices that
discriminate against opening or maintaining Financial Accounts
for individuals who are Specified U.S. Persons and residents of
Singapore.
B. Local Bank. A Financial Institution satisfying the following
requirements:
1. The Financial Institution operates solely as (and is licensed and
regulated under the laws of Singapore as) (a) a bank or (b) a
credit union or similar cooperative credit organization that is
operated without profit;
2. The Financial Institution’s business consists primarily of
receiving deposits from and making loans to, with respect to
a bank, unrelated retail customers and, with respect to a credit
union or similar cooperative credit organization, members,
provided that no member has a greater than five percent interest
in such credit union or cooperative credit organization;
3. The Financial Institution satisfies the requirements set forth in
subparagraphs A(2) and A(3) of this section, provided that, in
addition to the limitations on the website described in
subparagraph A(3) of this section, the website does not permit
the opening of a Financial Account;
4. The Financial Institution does not have more than $175 million
in assets on its balance sheet, and the Financial Institution and
any Related Entities, taken together, do not have more than
$500 million in total assets on their consolidated or combined
balance sheets; and
5. Any Related Entity must be incorporated or organized in
Singapore, and any Related Entity that is a Financial Institution,
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with the exception of any Related Entity that is a retirement fund
described in paragraphs A through C of section II of this
Annex II or a Financial Institution with only low‑value accounts
described in paragraph C of this section, must satisfy the
requirements set forth in this paragraph B.
C. Financial Institution with Only Low‑Value Accounts. A
Singaporean Financial Institution satisfying the following
requirements:
1. The Financial Institution is not an Investment Entity;
2. No Financial Account maintained by the Financial Institution or
any Related Entity has a balance or value in excess of $50,000,
applying the rules set forth in Annex I for account aggregation
and currency translation; and
3. The Financial Institution does not have more than $50 million in
assets on its balance sheet, and the Financial Institution and any
Related Entities, taken together, do not have more than
$50 million in total assets on their consolidated or combined
balance sheets.
D. Qualified Credit Card Issuer. A Singaporean Financial Institution
satisfying the following requirements:
1. The Financial Institution is a Financial Institution solely
because it is an issuer of credit cards that accepts deposits
only when a customer makes a payment in excess of a balance
due with respect to the card and the overpayment is not
immediately returned to the customer; and
2. Beginning on or before July 1, 2014, the Financial Institution
implements policies and procedures to either prevent a customer
deposit in excess of $50,000, or to ensure that any customer
deposit in excess of $50,000, in each case applying the rules set
forth in Annex I for account aggregation and currency
translation, is refunded to the customer within 60 days. For
this purpose, a customer deposit does not refer to credit balances
to the extent of disputed charges but does include credit
balances resulting from merchandise returns.
IV. Investment Entities that Qualify as Deemed‑Compliant FFIs and
Other Special Rules. The Financial Institutions described in paragraphs A
through E of this section are Non‑Reporting Singaporean Financial
Institutions that shall be treated as deemed‑compliant FFIs for purposes of
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section 1471 of the U.S. Internal Revenue Code. In addition, paragraph F
of this section provides special rules applicable to an Investment Entity.
A. Trustee‑Documented Trust. A trust established under the laws of
Singapore to the extent that the trustee of the trust is a Reporting U.S.
Financial Institution, Reporting Model 1 FFI, or Participating FFI and
reports all information required to be reported pursuant to the
Agreement with respect to all U.S. Reportable Accounts of the trust.
B. Sponsored Investment Entity and Controlled Foreign
Corporation.
A
Financial
Institution
described
in
subparagraph B(1) or B(2) of this section having a sponsoring
entity that complies with the requirements of subparagraph B(3) of
this section.
1. A Financial Institution is a sponsored investment entity if (a) it
is an Investment Entity established in Singapore that is not a
qualified intermediary, withholding foreign partnership, or
withholding foreign trust pursuant to relevant U.S. Treasury
Regulations; and (b) an Entity has agreed with the Financial
Institution to act as a sponsoring entity for the Financial
Institution.
2. A Financial Institution is a sponsored controlled foreign
corporation if (a) the Financial Institution is a controlled
foreign corporation1 organized under the laws of Singapore that
is not a qualified intermediary, withholding foreign partnership,
or withholding foreign trust pursuant to relevant U.S. Treasury
Regulations; (b) the Financial Institution is wholly owned,
directly or indirectly, by a Reporting U.S. Financial Institution
that agrees to act, or requires an affiliate of the Financial
Institution to act, as a sponsoring entity for the Financial
Institution; and (c) the Financial Institution shares a common
electronic account system with the sponsoring entity that
enables the sponsoring entity to identify all Account Holders
and payees of the Financial Institution and to access all account
and customer information maintained by the Financial
Institution including, but not limited to, customer
A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined
voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such
corporation, is owned, or is considered as owned, by “United States shareholders” on any day during the taxable
year of such foreign corporation. The term a “United States shareholder” means, with respect to any foreign
corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total
combined voting power of all classes of stock entitled to vote of such foreign corporation.
1
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identification information, customer documentation, account
balance, and all payments made to the Account Holder or payee.
3. The sponsoring
requirements:
entity
complies
with
the
following
(a) The sponsoring entity is authorized to act on behalf of the
Financial Institution (such as a fund manager, trustee,
corporate director, or managing partner) to fulfill
applicable registration requirements on the IRS FATCA
registration website;
(b) The sponsoring entity has registered as a sponsoring entity
with the IRS on the IRS FATCA registration website;
(c) If the sponsoring entity identifies any U.S. Reportable
Accounts with respect to the Financial Institution, the
sponsoring entity registers the Financial Institution
pursuant to applicable registration requirements on the
IRS FATCA registration website on or before the later of
December 31, 2015 and the date that is 90 days after such a
U.S. Reportable Account is first identified;
(d) The sponsoring entity agrees to perform, on behalf of the
Financial Institution, all due diligence, withholding,
reporting, and other requirements that the Financial
Institution would have been required to perform if it
were a Reporting Singaporean Financial Institution;
(e) The sponsoring entity identifies the Financial Institution
and includes the identifying number of the Financial
Institution (obtained by following applicable registration
requirements on the IRS FATCA registration website) in
all reporting completed on the Financial Institution’s
behalf; and
(f) The sponsoring entity has not had its status as a sponsor
revoked.
C. Sponsored, Closely Held Investment Vehicle. A Singaporean
Financial Institution satisfying the following requirements:
1. The Financial Institution is a Financial Institution solely
because it is an Investment Entity and is not a qualified
intermediary, withholding foreign partnership, or withholding
foreign trust pursuant to relevant U.S. Treasury Regulations;
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2. The sponsoring entity is a Reporting U.S. Financial Institution,
Reporting Model 1 FFI, or Participating FFI, is authorized to act
on behalf of the Financial Institution (such as a professional
manager, trustee, or managing partner), and agrees to perform,
on behalf of the Financial Institution, all due diligence,
withholding, reporting, and other requirements that the
Financial Institution would have been required to perform if it
were a Reporting Singaporean Financial Institution;
3. The Financial Institution does not hold itself out as an
investment vehicle for unrelated parties;
4. Twenty or fewer individuals own all of the debt interests and
Equity Interests in the Financial Institution (disregarding debt
interests owned by Participating FFIs and deemed‑compliant
FFIs and Equity Interests owned by an Entity if that Entity owns
100 percent of the Equity Interests in the Financial Institution
and is itself a sponsored Financial Institution described in this
paragraph C); and
5. The sponsoring
requirements:
entity
complies
with
the
following
(a) The sponsoring entity has registered as a sponsoring entity
with the IRS on the IRS FATCA registration website;
(b) The sponsoring entity agrees to perform, on behalf of the
Financial Institution, all due diligence, withholding,
reporting, and other requirements that the Financial
Institution would have been required to perform if it
were a Reporting Singaporean Financial Institution and
retains documentation collected with respect to the
Financial Institution for a period of six years;
(c) The sponsoring entity identifies the Financial Institution in
all reporting completed on the Financial Institution’s
behalf; and
(d) The sponsoring entity has not had its status as a sponsor
revoked.
D. Investment Advisors and Investment Managers. An Investment
Entity established in Singapore that is a Financial Institution solely
because it (1) renders investment advice to, and acts on behalf of, or
(2) manages portfolios for, and acts on behalf of, a customer for the
purposes of investing, managing, or administering funds deposited in
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the name of the customer with a Financial Institution other than a
Nonparticipating Financial Institution.
E. Collective Investment Vehicle. An Investment Entity established in
Singapore that is regulated as a collective investment vehicle,
provided that all of the interests in the collective investment vehicle
(including debt interests in excess of $50,000) are held by or through
one or more exempt beneficial owners, Active NFFEs described in
subparagraph B(4) of section VI of Annex I, U.S. Persons that are not
Specified U.S. Persons, or Financial Institutions that are not
Nonparticipating Financial Institutions.
F. Special Rules. The following rules apply to an Investment Entity:
1. With respect to interests in an Investment Entity that is a
collective investment vehicle described in paragraph E of this
section, the reporting obligations of any Investment Entity
(other than a Financial Institution through which interests in the
collective investment vehicle are held) shall be deemed fulfilled.
2. With respect to interests in:
(a) An Investment Entity established in a Partner Jurisdiction
that is regulated as a collective investment vehicle, all of
the interests in which (including debt interests in excess of
$50,000) are held by or through one or more exempt
beneficial owners, Active NFFEs described in
subparagraph B(4) of section VI of Annex I, U.S.
Persons that are not Specified U.S. Persons, or Financial
Institutions that are not Nonparticipating Financial
Institutions; or
(b) An Investment Entity that is a qualified collective
investment vehicle under relevant U.S. Treasury
Regulations;
the reporting obligations of any Investment Entity that is a
Singaporean Financial Institution (other than a Financial
Institution through which interests in the collective
investment vehicle are held) shall be deemed fulfilled.
3. With respect to interests in an Investment Entity established in
Singapore that is not described in paragraph E or
subparagraph F(2) of this section, consistent with paragraph 4
of Article 5 of the Agreement, the reporting obligations of all
other Investment Entities with respect to such interests shall be
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deemed fulfilled if the information required to be reported by
the first‑mentioned Investment Entity pursuant to the
Agreement with respect to such interests is reported by such
Investment Entity or another person.
4. An Investment Entity established in Singapore that is regulated
as a collective investment vehicle shall not fail to qualify under
paragraph E or subparagraph F(2) of this section, or otherwise
as a deemed‑compliant FFI, solely because the collective
investment vehicle has issued physical shares in bearer form,
provided that:
(a) The collective investment vehicle has not issued, and does
not issue, any physical shares in bearer form after
December 31, 2012;
(b) The collective investment vehicle retires all such shares
upon surrender;
(c) The collective investment vehicle (or a Reporting
Singaporean Financial Institution) performs the due
diligence procedures set forth in Annex I and reports
any information required to be reported with respect to any
such shares when such shares are presented for redemption
or other payment; and
(d) The collective investment vehicle has in place policies and
procedures to ensure that such shares are redeemed or
immobilized as soon as possible, and in any event prior to
January 1, 2017.
V. Accounts Excluded from Financial Accounts. The following accounts
are excluded from the definition of Financial Accounts and therefore shall
not be treated as U.S. Reportable Accounts.
A. Certain Savings Accounts.
1. Retirement and Pension Account. A retirement or pension
account maintained in Singapore that satisfies the following
requirements under the laws of Singapore.
(a) The account is subject to regulation as a personal
retirement account or is part of a registered or regulated
retirement or pension plan for the provision of retirement
or pension benefits (including disability or death benefits);
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(b) The account is tax‑favored (i.e., contributions to the
account that would otherwise be subject to tax under the
laws of Singapore are deductible or excluded from the
gross income of the account holder or taxed at a reduced
rate, or taxation of investment income from the account is
deferred or taxed at a reduced rate);
(c) Annual information reporting is required to the tax
authorities in Singapore with respect to the account;
(d) Withdrawals are conditioned on reaching a specified
retirement age, disability, or death, or penalties apply to
withdrawals made before such specified events; and
(e) Either (i) annual contributions are limited to $50,000 or
less, or (ii) there is a maximum lifetime contribution limit
to the account of $1,000,000 or less, in each case applying
the rules set forth in Annex I for account aggregation and
currency translation.
2. Non‑Retirement Savings Accounts. An account maintained in
Singapore (other than an insurance or Annuity Contract) that
satisfies the following requirements under the laws of
Singapore.
(a) The account is subject to regulation as a savings vehicle
for purposes other than for retirement;
(b) The account is tax‑favored (i.e., contributions to the
account that would otherwise be subject to tax under the
laws of Singapore are deductible or excluded from the
gross income of the account holder or taxed at a reduced
rate, or taxation of investment income from the account is
deferred or taxed at a reduced rate) or state‑subsidized;
(c) Withdrawals are conditioned on meeting specific criteria
related to the purpose of the savings account (for example,
the provision of educational or medical benefits), or
penalties apply to withdrawals made before such criteria
are met; and
(d) Annual contributions are limited to $50,000 or less or do
not exceed $50,000, applying the rules set forth in Annex I
for account aggregation and currency translation.
3. Child Development Accounts. A child development account
under the Child Development Co‑Savings Scheme, as stipulated
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under Section 3 of the Child Development Co‑Savings Act,
established and maintained in Singapore to provide savings for
educational and healthcare expenses for a Singaporean child.
4. Central Provident Fund Investment Accounts. An account
maintained in Singapore that satisfies the following
requirements under the laws of Singapore:
(a) Contributions are restricted to the amounts held in the
account holder’s Central Provident Fund (CPF) savings
account;
(b) The account is subject to regulation under the CPF Act (in
accordance with CPF (Investment Schemes) Regulations
and CPF (Minimum Sum Schemes) Regulations);
(c) The account is tax‑favored (i.e., contributions to the
account that would otherwise be subject to tax under the
laws of Singapore are deductible or excluded from the
gross income of the account holder or taxed at a reduced
rate, or taxation of investment income from the account is
deferred or taxed at a reduced rate); and
(d) Earnings and principal are returned to the account holder’s
CPF savings account, and withdrawals of such earnings
and principal are conditioned on reaching a specified
retirement age, disability, or death, or penalties apply to
withdrawals made before such specified events.
B. Certain Term Life Insurance Contracts. A life insurance contract
maintained in Singapore with a coverage period that will end before
the insured individual attains age 90, provided that the contract
satisfies the following requirements:
1. Periodic premiums, which do not decrease over time, are
payable at least annually during the period the contract is in
existence or until the insured attains age 90, whichever is
shorter;
2. The contract has no contract value that any person can access
(by withdrawal, loan, or otherwise) without terminating the
contract;
3. The amount (other than a death benefit) payable upon
cancellation or termination of the contract cannot exceed the
aggregate premiums paid for the contract, less the sum of
mortality, morbidity, and expense charges (whether or not
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actually imposed) for the period or periods of the contract’s
existence and any amounts paid prior to the cancellation or
termination of the contract; and
4. The contract is not held by a transferee for value.
C. Account Held By an Estate. An account maintained in Singapore
that is held solely by an estate if the documentation for such account
includes a copy of the deceased’s will or death certificate.
D. Escrow Accounts. An account maintained in Singapore established
in connection with any of the following:
1. A court order or judgment.
2. A sale, exchange, or lease of real or personal property, provided
that the account satisfies the following requirements:
(a) The account is funded solely with a down payment,
earnest money, deposit in an amount appropriate to secure
an obligation directly related to the transaction, or a similar
payment, or is funded with a financial asset that is
deposited in the account in connection with the sale,
exchange, or lease of the property;
(b) The account is established and used solely to secure the
obligation of the purchaser to pay the purchase price for
the property, the seller to pay any contingent liability, or
the lessor or lessee to pay for any damages relating to the
leased property as agreed under the lease;
(c) The assets of the account, including the income earned
thereon, will be paid or otherwise distributed for the
benefit of the purchaser, seller, lessor, or lessee (including
to satisfy such person’s obligation) when the property is
sold, exchanged, or surrendered, or the lease terminates;
(d) The account is not a margin or similar account established
in connection with a sale or exchange of a financial asset;
and
(e) The account is not associated with a credit card account.
3. An obligation of a Financial Institution servicing a loan secured
by real property to set aside a portion of a payment solely to
facilitate the payment of taxes or insurance related to the real
property at a later time.
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4. An obligation of a Financial Institution solely to facilitate the
payment of taxes at a later time.
E. Partner Jurisdiction Accounts. An account maintained in Singapore
and excluded from the definition of Financial Account under an
agreement between the United States and another Partner Jurisdiction
to facilitate the implementation of FATCA, provided that such
account is subject to the same requirements and oversight under the
laws of such other Partner Jurisdiction as if such account were
established in that Partner Jurisdiction and maintained by a Partner
Jurisdiction Financial Institution in that Partner Jurisdiction.
VI. Definitions. The following additional definitions shall apply to the
descriptions above:
A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a
Financial Institution with respect to which a non‑U.S. government or
agency thereof agrees to obtain and exchange information pursuant to
a Model 1 IGA, other than a Financial Institution treated as a
Nonparticipating Financial Institution under the Model 1 IGA. For
purposes of this definition, the term Model 1 IGA means an
arrangement between the United States or the Treasury Department
and a non‑U.S. government or one or more agencies thereof to
implement FATCA through reporting by Financial Institutions to such
non‑U.S. government or agency thereof, followed by automatic
exchange of such reported information with the IRS.
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B. Participating FFI. The term Participating FFI means a Financial
Institution that has agreed to comply with the requirements of an FFI
Agreement, including a Financial Institution described in a Model 2
IGA that has agreed to comply with the requirements of an FFI
Agreement. The term Participating FFI also includes a qualified
intermediary branch of a Reporting U.S. Financial Institution, unless
such branch is a Reporting Model 1 FFI. For purposes of this definition,
the term FFI Agreement means an agreement that sets forth the
requirements for a Financial Institution to be treated as complying with
the requirements of section 1471(b) of the U.S. Internal Revenue Code.
In addition, for purposes of this definition, the term Model 2 IGA
means an arrangement between the United States or the Treasury
Department and a non‑U.S. government or one or more agencies
thereof to facilitate the implementation of FATCA through reporting by
Financial Institutions directly to the IRS in accordance with the
requirements of an FFI Agreement, supplemented by the exchange of
information between such non‑U.S. government or agency thereof and
the IRS.
Made on 17 March 2015.
LIM SOO HOON
Permanent Secretary
(Finance) (Performance),
Ministry of Finance,
Singapore.
[R32.2.0001.V.31; AG/LLRD/SL/134/2010/57 Vol. 2]